You need to see a good tax guy. There is now way you should be paying 45% taxes of of your profits. There are tons of loopholes and deductions you can take and you won’t have to pay near that amount. The specifics I am talking about are way to lengthy to go into here. However do not let it hold you back from getting started in this business. You will find that paying taxes on a $0 profit is easy so you might as well just get started and as you get going find the right tax person for you.
I havn’t recieved my course book or done my first deal yet.Right now I’m doing research,homework,and more research before I start flipping properties.Before i do my first deal,I would like to know how other flippers handle their taxes.Eventually,after so many flips,I assume that I would be tagged as a dealer by the irs, ( i dont plan to set up a corp. yet)and be subject to income tax and self employment tax totaling approx. 45% .I guess the best thing to do is put approx. 45% of your profits aside so you can pay your taxes at the end of the year. Is this the best way to handle this.Any comments would be appreciated !Thank You !