Bringing in tic partner

[Dan Fritschen]

Hello.  I have a rental home and another person wants to invest $100k and become tic and share in costs profits etc 

when I receive this money does the irs consider it a sale of the property and taxable or an investment and n’ont taxable?

of course my goal is to structure it as an investment.  I will not use the $100k to invest in another property. Probably just keep it in a cd for short term. 

[Sean O'Keefe]

@Dan Fritschen 

1. Not a sale or taxable depending on the way you structure the deal. Talk to Real Estate CPA before doing it.
2. I'd recommend putting this $100k in a in an LLC along with rental to formalize the partnership. The $100k from the other person would be considered a "capital contribution". The other person is your investment partner in LLC
3. Partners in LLC pay taxes based on operating agreement and % ownership (each partner gets a Schedule K-1 to report the income from LLC on personal tax return)

@Nicholas Dutson more details needed on your property, what it's worth, etc to answer this. Don't be stingy with the details. 

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*This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.