Tax implication on HML loans

[Erin Elam]

Hello BP!

I couldn't find a straight answer to this question: receiving funds from an HML ... what are the tax implications for the following year?

If i use an HML this year for a flip, they fund me for purchase + rehab, etc ... does all that money get taxed as ordinary income?

If so,  are there any tips to lower that tax burden?

Thank you