Submitted by HurryPrudent6709 t3_zz5jb3 in personalfinance
HurryPrudent6709 OP t1_j2a6phw wrote
Reply to comment by avalpert in Bookkeeping question by HurryPrudent6709
Let’s say it was the sale of a home , 20k was paid to a contractor by A. Homes sells for 100k
avalpert t1_j2a86eo wrote
It would still come down to the nature of the arrangement between A and B - is the $20k a straight contribution of capital to the enterprise that is expected to be repaid, is it a form of purchasing their 50% share in the profits (with B doing so through other means), etc.
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