I'm considering buying a property to fix & flip where I'd borrower 75% of the purchase price from a commercial lender and the remaining downpayment (25%) and rehab costs will be wired in by a friend from his IRA.
At closing I should receive a check back from the title company for the rehab costs (less fees etc). Will I be taxed on the cash back I get once I purchase the home? (Net 25k+/-)
No, you would not be taxed on this transaction at all. You would be taxed on the net gain on the sale.
Does your first lender know you're borrowing the remainder of the cash? Most won't allow this, certainly no up to 100% of the deal. They will see the HUD before closing, so if they're not away of this they may back out of the deal close to closing.
Most hard money lenders won't give you the entire rehab budget at closing. They might give you a slice of it, but most of it comes after you do the work and get it inspected.
Just realized I answered two of your questions without realizing it was the same person. Given your questions I STRONGLY recommend you find an accountant who's familiar with fix and flips right away and have a discussion with them.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing