Wholesaling and taxes

[Carter Bushman]

Hey all, I’m working on wholesaling right now and to be honest I don’t know much about taxes. I’ve only had to do my taxes once or twice and only through turbotax and such. Is there a certain percentage of my wholesaling profits I should expect to pay for taxes?

[Lance Lvovsky]

Wholesaling is subject to ordinary income tax rates. Under current tax law, the highest marginal tax rate for ordinary income is 37%. Wholesalers are also generally subject to self-employment tax, although there are strategies to minimize these taxes.