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9
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2
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Graham Melvin
  • Investor
  • Bellingham, WA
2
Votes |
9
Posts

Income class and tax consequences for HML/private loans?

Graham Melvin
  • Investor
  • Bellingham, WA
Posted

Hello BP, 

I've been approached about providing private lending (HML) for an acquaintances house flip. I wanted to know if the income from both the points and loan interest will be categorized as passive income (and subject to associated taxes) or if the points (fees to close) would be active income and subject to FICA taxes as well?

Thanks!

Graham

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