Two of my US based friends are algo trading their personal portfolios. If I provide some help in algo development, they are ready so share the profit with me. However, the profit they make with their account will be taxed according to the US tax rates. If they share a percentage of profit with me, will I have to pay taxes on them? What will be the tax rates and what deductions can I avail? Is there any way to get this income tax free? Paying tax twice will rob me of all the profits !