Capital Investment or Personal Loan?

[Alejandra Macias]

Good afternoon Bigger Pockets members! We are a start-up partnership Real Estate Company and I have a question in regards to taxes as it would be our first year filing. Our partners (married-couple) put forward personal money of $16k to buy our first two rehab properties. A month later, we received $24k from Angel Investors, at that point our partners paid themselves back $15k but left $1k in the company. Was their contribution considered a loan or capital invested? How would this be handled when filing taxes? Thank you for your time!

[Alejandra Macias]

@Simcha Davidman Thank you for your reply! No there was no legal written document by our partners other than the Purchase Agreement of both Properties. By your statement that whether it was a repayment of a loan or withdrawal of capital are non-taxable events might answer my question. In any case, I will also seek a professional for further questions. Thank you so much for your help!