First flip - need an idea on tax strategy

[Chris Carrigan]

This year finally jumped in and purchased my first property to flip. Came out with profit of @ $20K. Have not set up an LLC. I Purchased the house and renovated using 401K and Home equity loans. Both of these loans were in my name only. The house was deeded in both my name and my wife's. I realize that the income is treated as general income and not an investment gain. My question is this, my wife is a real estate agent I used her as my buyers agent to purchase the house. Used the Remax Company she works for to sell the house. I have a full time job, not related to real estate. We file jointly, so my options are claim this as an extra business for me or make it part of her real estate business. But if I make it part of hers,then how to I claim my mileage for working on the flip everyday. Could i be her employee? If i claim my own business then we would both be paying self employment taxes. Her for her real estate business and me for my flipping business. I know, need to hire a CPA and/or tax attorney but would like to have some idea of which way to go before I meet with them. Any suggestions from those who are experienced flippers. I only did one flip, but may do another this year.