Paying with (someone else's) cash - Tax implications?
I have a deal under contract and have raised some capital from a private party to pay for it. The lender will be treating this as a "personal loan", meaning I will technically be paying cash for the property and have 100% equity (great deal for me!).
If he brings his money to the closing table to pay for my deal, will I be taxed as if it is a gift?
Should I simply have him write me a check, document it with a promissory note, and bring "my" cash to the closing table? I know loans are not taxable income, but I'd like to avoid getting audited.