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Updated over 10 years ago on .
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Is a wholesaler a real estate dealer?
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

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.