Wholesaling Taxes: What You Owe
Disclaimer: This article provides general tax information for educational purposes only. It is not tax advice. Tax laws are complex, vary by state, and change frequently. Consult a CPA or tax professional familiar with real estate investing for advice specific to your tax situation.
Assignment fees are ordinary income, not capital gains.
Key areas to understand
Self-employment tax (15.3%) applies.
Quarterly estimated payments due April 15, June 15, September 15, January 15.
Deductible expenses: marketing, skip tracing, software, mileage, phone, education, earnest money forfeited.
Implementation details
Section 199A QBI deduction may apply.
Entity structure affects tax treatment — S-Corp can save SE tax above certain income levels.
State taxes vary..
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