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Updated almost 5 years ago on . Most recent reply presented by

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431
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340
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Sheryl Sitman
  • Rental Property Investor
  • Philadelphia, PA
340
Votes |
431
Posts

Sweat for Equity Advice needed

Sheryl Sitman
  • Rental Property Investor
  • Philadelphia, PA
Posted

What are the top things to be aware of when getting equity in a deal in exchange for a little sweat?

Most Popular Reply

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1,407
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754
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Lance Lvovsky
  • Accountant
  • Fort Lauderdale, FL
754
Votes |
1,407
Posts
Lance Lvovsky
  • Accountant
  • Fort Lauderdale, FL
Replied

@Sheryl Sitman

Need to be mindful of proper partnership structure. Sweat equity could create income tax liability upon receipt of capital interests. You and tax advisors need to review partnership agreement regarding profit vs capital interests, allocations, and capital accounts.

  • Lance Lvovsky
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