Thursday, December 15, 2011

House flipping w partner- the loan is on me only. 1099 or deed to partnership to share the taxble income?

We are in a Texas general partnership. Best loan requiered that only one of us be borrower. We want to split income AND bulid income history for the partnership (so it can get its own loans later), so it needs to be the seller when we flip. 2 options I have found are deeding to the partnership pre-sale or puting the partnership on the closing statment to get 100% of proceeds and issuing a 1099 to it from me for all the proceeds. Deed seems cleaner but worried about due on sale clause in mortage. Thanks for any suggestions!

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