Updated almost 7 years ago on .
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Investor paying taxes on money investing in BRRRR
Ok, So here is the scenario. I recently completed a BRRRR and used another person to help fund the project. I gave them 15% on their money for 3 months. Now that I have refinanced the property, I will be paying them back with the proceeds from the Refi. Do they have to pay taxes on that interest since its being paid with debt (mortgage)?