At that point if you purchased the property to flip it the cost of renovations, repairs, apoliances, etc... would be capitalized as WIP inventory and then recognized as cost of sales once the property is sold.If you are not a real estate professional and you aren't actively flipping multiple properties per year (specific number is a gray area) then you would still have long term or short term capital gains.

As far as license for wholesaling like @Chris Heeren said, its gray, the terminology that dictates what activities  require a license are (for a fee and for another) and a fee is described as compensation or a thing of value, so it doesnt have to be money.

This classification seems to be in a bit of a gray area as I am having trouble finding consistent guidance as well as an idea of what is typically enforced both on a federal and local level.

Thanks @Ned Carey, @Amy Beth, Account Closed for your response.I agree, $50 is not worth the risk and gray area.

If any of that info helps.Matt Thompson

If any of that info helps.Matt Thompson

@Michael HahnAll the above are great I would Call Donny Thompson with ERA also He manages around 600 units I can send you his contact info if you haven’t found anyone yet 

@Anthony Thompson Appreciate the referral!

It is a sticky situation as it still seems to have alot of gray area around it. 

@David Thompson puts out some good content as well that I'd recommend.