Tax Question
Earlier this year I purchased a home on the advice of two real estate professional friend of mine. The idea was to buy the home, make a few repairs, and then sell the home soon thereafter. My friends brought me into the loop because they did not have sufficient equity capital to complete transaction. Basically, I put up the money and they have done all the work. They've now found a buyer for the property and we are in escrow to sell. I am the only person on the title, but we've agreed to split the upside equally 3-ways. My question is, how can we manage the tax implications of this arrangement? Can I pay each of my friends a finders fee equal to 33% of the profits of the deal? Is this OK?