Texas State Franchise Tax - Gross Revenue based off Sales Price?

[Adriel Hsu]

Hello,

My CPA is saying the gross revenue on whether or not I qualify the $1.23M Threshold for Texas State Franchise Tax is based off sales price, not the profit.

For Example:

House 1 - Flip:
Purchase $400k
Sold: $450k
Profit: $50k

House 2 - Wholesale:
Contract Price: $250k
Assigned For: $275k
Profit: $25k

House 3 - Flip:
Purchase $700k
Sold: $775k
Profit: $75k

Total Profits: $150k

Expenses: Marketing/Virtual Assistants/Data - $50k

Net Profit: $100k

He is saying my Gross Revenue is $450k + $25k + $775k = $1.25M which would be above the threshold and I would have to pay franchise taxes of 0.375% on the $150k. 

1) I thought my gross revenue would be $150k.

2) Even if the Gross Revenue calculation method is correct, shouldn't my tax be on 0.375% of $100k, my true net profit?

Thanks