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Tax implications in house flipping
I am partnering with my brother-in-law on a house flip. I will provide him with the cash he needs to purchase the home with seller financing, I will provide the funds to fund the flip, and we have agreed to split the profit when the house sells. He found the deal and is doing a lot of the work on the flip and I’m pretty much hands off. So I’m just the money in the deal. When we sell I’m assuming I will have pay taxes based on my normal tax rate. Is this a correct assumption? Is there anyway to protect that income from being taxed at my regular rate which is 35%?