Updated almost 9 years ago on .
Most recent reply
presented by
Taxes on RE Income through an LLC vs Finders Fee?
If I brought a property to someone in California, and my intention was to setup an LLC with the person where I get $10K (for example) from the net when it's sold. But they just want to pay me a $10K finders fee upfront.
Won't a direct $10K finders fee payment be taxed at a much higher rate than $10K through the LLC, after the property is sold? Because the LLC would be considered capital gains right? It's coming from a property.
And as far as the $10K finders fee route, What type of tax would that be classified as? Gift income? Estate Tax?