REO Tax implications & Attorneys' fees

[Danny N.]

I'm new to BP and to RE Investing.I'm looking to get into REO Flipping, but have a few questions I'd like to ask those that have experience in this area:

(1) What are the tax implications of doing a double close ? since you flip the property the same day, does that mean you'll be liable for a higher Capital gains tax ?

(2) what is the typical fee to pay Attorneys handling a double close?

I contacted one and he quoted me $1,000 retainer upfront and a range between $1500 - 2500 for a closing with no issues.(he said most double closings always had a myriad of issue, non were smooth). So I was assuming those quotes were conservative.

[Jon Holdman]

Wholesaling is always going to be taxed at your ordinary rate. If you assign a contract the fee is going to be ordinary income. If you double close, it will be short term capital gains. You'll probably have to pay SET (self employment tax), too.

Sorry, don't know closing costs in MA.