All Forum Posts by: Mike Steffen

Thanks both for your quick reply. My friend has llc firm but I am not partner in the company. He does multiple flipping project under his company and I am investing only in a couple of projects. So I dont think I can get K1 from his company. Sorry I was not clear in the beginning. Can you help to understand tax reporting purpose?

Thanks.

One of my friend has business of flipping houses. He offered me to invest in his business on profit sharing. I will be just an investor and will get my money back with profit once he sells property after fixing it. 

How do I report my income on my tax return? 

Does he need to issue 1099? Do I have to pay social security tax/Medicare tax on this extra income? 

If he sells property after a year - can I report this as long term gain? 

I would appreciate if someone can help us.

Thanks.