Wholesaling Income & Taxes

[Bill Mitchell]

This was my first year wholesaling part time here in DFW. I made a decent chunk of change doing it, about 40k. My question is when it comes to taxes, should I utilize a real estate tax professional at the end of the year? Based on what I have researched so far, it might not be worth it, and might be better to use a program such as turbo tax instead.

Money earned from wholesaling seems to be treated as regular income, with any deductions (marketing, website, driving etc.) made on schedule C.

If that is the case it might make the most sense financially to just use something such as Turbo Tax at the end of the year to see how much I need to pay back in taxes. I don't think visiting with a real estate tax professional will save me much money in this case. But I may be wrong, thanks in advance for your feedback.

[David Krulac]

@Shariyf Grevious

The OP's question was a lot simpler, implying sole proprietor with no employees, or corporate structure. He stated that he made $40,000 presumed that to be after expenses and therefore 100% taxable for Federal Income tax and in states with state income tax.

Your question can't be answered without knowing the entity structure. If the entity is a C corporation then there is double taxation at the corporate level and the individual level.

However, if the entity is a pass through entity such as an S corporation or an LLC, then the income may pass through the entity without taxation and be taxed at the individual level for single taxation. The 43% tax rate quoted above was for an indidual rate, corporations are taxed at a different rate.