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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Income is taxed, not the return of capital.. Posted by Ward-CA- on April 11, 2003 at 11:55 PM In Reply to: taxes/ investment posted by Gcastro on April 11, 2003 at 9:51 AM : Ward, my partner and I have purchase a property from a Bank. The property was put on my partners name only. I paid $30,000 and he paid 40,000. (Total price of 70K) The property is a fixer upper. I will spend about 10,000 in repairs from my own money. My partner will send me a 1099 once the property sells. However, here is the question: : We are selling the property for 100K, so we made about 20K profit. However since the property is only on my partners name, when he sends me a 1099 for $50K it is going to appear as if I made $50K, but in reality I only made 10K profit. When I pay taxes, would I be able to deduct 30K that I paid for the property and $10,000 (for repairs)that I spent on repairs, since my name is not currently on the title? : This may sound like a sily question, but I am confused (don't know much about taxes) =•=•=•=•=•=•=•=•=•=•=•= Gus, Your partner only has to send you a 1099 for the amount of the net profit or income you received. The rest of what he sent you was the return of your investment capital which isn’t taxed since it doesn’t represent any kind of income to you. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, my partner and I have purchase a property from a Bank. The property was put on my partners name only. I paid $30,000 and he paid 40,000. (Total price of 70K) The property is a fixer upper. I will spend about 10,000 in repairs from my own money. My partner will send me a 1099 once the property sells. However, here is the question: : : We are selling the property for 100K, so we made about 20K profit. However since the property is only on my partners name, when he sends me a 1099 for $50K it is going to appear as if I made $50K, but in reality I only made 10K profit. When I pay taxes, would I be able to deduct 30K that I paid for the property and $10,000 (for repairs)that I spent on repairs, since my name is not currently on the title? : : This may sound like a sily question, but I am confused (don't know much about taxes) : =•=•=•=•=•=•=•=•=•=•=•= : Gus, : Your partner only has to send you a 1099 for the amount of the net profit or income you received. The rest of what he sent you was the return of your investment capital which isn’t taxed since it doesn’t represent any kind of income to you. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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