Wholesale income? - Posted by Bill

Real Estate Investing
1

Posted by Bill on May 27, 2006 at 22:44:01:

Thanks for the help.

2

Wholesale income? - Posted by Bill

Posted by Bill on May 26, 2006 at 22:38:15:

Can anyone help with this.

  1. If I wholesale a property is this regular income as far as the IRS is concerned?
  2. If this is considered regular income and I invest all or part of this income to buy RE is this still considered regular income and will I have to pay income tax on this at the end of the year?
3

Re: Wholesale income? - Posted by dealmaker

Posted by dealmaker on May 27, 2006 at 06:14:26:

  1. Yes, just like the grocer or gas station owner pays taxes on the difference between “cost of goods” and sales. Remember though that the gross income is adjusted down by any expenses you incurred to create that income, mileage, advertising, etc.

  2. Still income, except it’s now in the basis of your future sales.

dealmaker