What are taxes like on a wholesale?

[Hunter Ambos]

Looking to get into wholesaling and don’t want to be surprised by high taxes due to the lump sum gained from the deal

[Jon Holdman]

The net income is ordinary income.  Net income is not the amount you receive when you close deals.  That's your gross income.  From that you subtract all your costs associated with running your wholesaling business.  The net income is subject to federal and state taxes at your ordinary, marginal rate.  This income is also subject to self employment tax (SET).  That's both halves of medicare and social security, so 15.3% in total.