Taking Money from Business Account and Putting into Real Estate

[Ashley Madalone]

I am looking to JV with my brother where I will do the real estate investing (finding deals, property management, etc.) and my brother will fund it from his business account. From a tax point of view, is it possible to move his money from his business account into a real estate purchase without paying tax on the money from his business account?

[Michael Smythe]

@Ashley Madalone guessing you're asking what the tax ramifications of using pre-tax business funds to invest are.

Not aware of a way to buy real estate and avoid paying taxes on the funds unless he'll use the real estate in his business.

His tax professional will probably advise he take the funds out as a loan, at a market rate & payment terms.