Mark and Team,
I live in Oregon. In May 2022 I entered into a Joint Venture agreement with a person in California (not related to me and I did not know them before this JV), where I loan them money and they trade it on Forex. If they make any money, they take 20% and my 80% stays in the account they set up for me and keep trading it. So far it has made money every month. I have not take any of the proceeds and I would like to not take any proceeds for at least another year so it can just grow. My question is this…do I pay taxes on the proceeds even though I haven’t taken any distribution? How is something like this taxed? If I have to pay tax on the proceeds even though I haven’t taken a distribution, then I will have to take a distribution in order to pay the taxes.
I like my CPA but not sure he understands. I need better advice.