JV agreement and an LLC


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I have an LLC that my wife and I are the only members. I made a JV agreement with another person on a home that was bought and then sold on contract. This other person gets 50% of any profits and loss, and my LLC gets 50% of any profits and loss from this home.

We originally thought that the person would get a K1 from our LLC, but realized this was incorrect as they are not a member to the LLC. We then researched and determined that we have a joint venture type agreement here. So when it comes tax time, do we list the gross revenue from the home, minus any expenses to come to a total profit. The money paid out to the partner on the deal would then just be expensed against the gross revenue of my LLC?

My LLC is the only company with the purchase agreements for the property, however the other partner who is not a member of my LLC brought me the deal, so I agreed to a 50/50 split arrangement.
 
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