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Investing in a Single Member LLC for Fix & Flip
House to be fixed and sold is held under an LLC that I have no ownership in. I invest money toward the purchase and rehab of this house utilizing a Joint Venture Operating Agreement. How would the earnings be taxed: business income paying self-employment tax (I think reported on 1099 MISC) or short term capital gains (I think reported on a 1099 DIV or INT)?