Capital Gain & Adding a Tax Specialist and Lawyer to the team

[Joshua Sokolow]

I have an LLC that will be doing an all cash purchase of a 3 br 1 bath SFH. We are going to be fronting the cost to acquire the property but the GC that I have used for several years is going to cover the cost for rehab. Then we're going to split the profits on the sale of this flip 50/50 (Purchase in Nov 2020 and List in March or April 2021).

I've never done a flip, which is why doing this deal makes a bit more sense because he has experience flipping and I'm investing out of state (technically, I'm out of the country right now).

My main obstacle at the moment is how to factor in capital gains taxes. There are 4 investors in this LLC and the property is being purchased by the LLC so I'm assuming that we'll have 100% of the tax burden and the GC won't have any. Is that correct? How would you all structure the dividing of profits after sale without knowing what the capital gains implications are?

Last thing, we're small and just getting started. We've decided it's time for a tax specialist and lawyer to join the team. How do you all factor those team members in from an expense point of view? What's a good price? Any recommendations?

Thanks,

Josh