Cashout Refi on Relative's House to House Flip & Tax Ramification

[Stephen McCracken]

Hey Guys,

Just got off the phone with my CPA (out in California)... relocated to Denver a few months ago.

I recently refinanced a retired relative's home (I was named co-borrower hence now on Title as joint tenant)

My questions are

1. Because I did not "contribute" to the cost of the home, will I be taxed for the refi cash out as gift tax? (I pay their mortgage and taxes)

2. This relative is aware I will be reallocating the cash out amount to start a house flipping/investment business in Denver. What is the best way to purchase a project- S Corp? LLC? Sole proprietor?

3. Any recommendations on a RE accountant who can help me with these questions?

Thanks!