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tax info for private money lending
Hi, Im a new investor in Charleston, SC and looking for some help from someone who has already figured out this problem. I have read books, listened to pod casts, found deals, and secured a private money lender who is interested in investing in fix and flips. Specifically, I am interested in how to receive the money from the lender account to my own to make the purchase without Uncle Sam seeing it as a taxable income. Also, after the sale how is that money deposited back to the original account without paying taxes on the original loan amount. Whats the easiest way to pay taxes on the net profits? Should I withhold the taxes before distributing or distribute and each person claims the income on their own taxes? Would it be easier to open a joint account to make payments and deposits? My private money lender is a personal friend of mine if that makes a difference. Thanks for the help!