Find answers, ask questions, and connect with our
community around the world.

Forums Forums Business Startups How to handle small family investment

  • How to handle small family investment

    updated 3 years, 6 months ago 0 Member · 1 Post
  • Charles

    Member
    July 30, 2019 at 4:19 pm

    Hi, I have a question about how exactly to tax myself, now that a family member has kicked in a bit of cash to help me grow. Okay so I buy and sell secondhand electronics, and My buy cost is usually less than $30 and sell price is anywhere from $70-300. Recently my uncle, seeing the progress I have made, and wanting to support me, has given me $1000 in exchange for 10% profit on anything bought using the money he gave me. So for example if i buy something for $20 using his money, and sell for $120 and after selling fees I profit $100 before taxes, do I give him $10 (10% of profit) and THEN tax the $90 (90% of profit) as my own profit? OR do I tax the $100 FIRST (I use 25% tax) and then give him 10% of the $75 ($7.50) left over after tax and keep 90% of the $75 left over ($67.50)? Please, any guidance is appreciated. Also if you have any other tips about using investor money in your small business, I would love to hear them! – by hq overview the_wert – –

Viewing 1 of 1 replies
Reply to: Charles
Your information:

Cancel
Original Post
0 of 0 posts June 2018
Now