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Updated about 10 years ago on . Most recent reply

User Stats

171
Posts
49
Votes
Cameron Ellis
  • Investor
  • Memphis, TN
49
Votes |
171
Posts

Is a wholesaler a real estate dealer?

Cameron Ellis
  • Investor
  • Memphis, TN
Posted

I've been looking online getting ready for tax season, and I'm having trouble identifying if I will be taxed under a real estate dealer. I've wholesaled 30+ transactions this year using assignment contract, wholesale-flipped 4-5(brought and resold as-is) and have 3 under holding currently that I will rent out, one that may be owner financed. will the IRS identify me as a real estate dealer?  

I deed everything under my personal name, and a partner. I've done a couple deals within a property trust. 

I see the taxes would be a lot higher under a real estate dealing my reason for asking.

Most Popular Reply

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1,727
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837
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Dave Toelkes
  • Investor
  • Pawleys Island, SC
837
Votes |
1,727
Posts
Dave Toelkes
  • Investor
  • Pawleys Island, SC
Replied

@Cameron Ellis 

I think Curt is confusing Real Estate Professional status with a dealer to real estate.  Yes, in your situation, you will be deemed a dealer to real estate.  All profits and assignment fees are taxed as ordinary business income and subject to self-employment income taxes.

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