Wholesale Help With Taxes

[Jerrold Browning]

Good Morning Fellow Investors!

Here is the dilemma. My partner and I are wholesaling and splitting everything 50/50. We are doing these deals under a company that he had before we started so at the end of the year he will have to pay taxes for the full deal vs just his half. I will also be responsible for my taxes that I will have to manually file for my half. If we take 15% off or whatever the amount is for taxes and then split I will be paying double. The only solution I thought of so far was to start a new LLC just for wholesaling. PLEASE help us out. We don't want to get too many deals under our belt without this resolved. Thanks in advance.

[Wayne Brooks]

Jerrold Browning if the company pays you your half of profits to you, it doesn't pay the taxes on your half, you do. The company would issue some type of 1099. You would pay your income and self employment taxes.