Updated almost 4 years ago on . Most recent reply
Taxation with Partnerships
Hello BP Community newbie here, I have a general question. When flipping a house with lets say a total of 3 people, each takes their profit & are taxed individually correct? Would they each report their gain separately or is there a form for all 3?
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I guess it would depend on how they are getting the money. If they are getting money at close of escrow with a split payout they should be reporting that as 1099 money. If one of you gets the payout and distributes it to the other 2, you're the one taking the tax hit for them unless they fill out a w9 and then you 1099 them their money. If you guys are filing as a business partnership, you'll need to fill out a 1065 form I think. I've never gone down that route but I'm sure someone will chime in.