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Updated about 12 years ago on . Most recent reply

Leslie Zhang's profile image
Leslie Zhang's profile image
Leslie Zhang
  • from Burnaby, British Columbia
  • Member since Jun 2, 2012
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Leslie Zhang's profile image
Leslie Zhang's profile image
Leslie Zhang
  • from Burnaby, British Columbia
  • Member since Jun 2, 2012
Connect
Leslie Zhang
  • Burnaby, British Columbia
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Starting Out

Profit Sharing and Tax Responsibilities...

Leslie Zhang
  • Burnaby, British Columbia
Posted

I have a new real estate investment company that has a 50/50 or 40/60 split with my investors.

My question is, if I pay the investors out right away, they would receive their portion pre-tax. Will I have to pay the taxes on the amounts given to the investors at a later time, thereby diminishing my own returns?

To make matters a little more complicated, both myself and the investors are Canadian (although, on of the partners in the investment company is a US citizen as well).

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