Because our W2 jobs, rental income, and stock sales may put us above the $150k threshold for real estate deductions for married-filing-jointly,  I am looking into getting "real estate professional status" designation by the IRS in order to write off of those interest payments and depreciation.

Some markets are too expensive to cash flow a rental, but thats usually not an issue with flipping.I have done it with a joint bank account, which also serves as a ledger for the project.

If cost is an issue you could Draft a joint venture agreement.

There seem to be two clear differences:- The parties were joint owners of the property, which clearly indicates a shared beneficial interest between them.

An Example of co-signing from page 218: If the borrower owns two financed investment properties and the co-borrower owns three other financed investment properties, then jointly, the borrowers have five financed investment properties in addition to their principal residence(s), if applicable.See also B3-4.1-01, Minimum Reserve Requirements, B2-2-03, Multiple Financed Properties for the Same Borrower, B3-3.2-07, Rental Income.

If you file jointly, your wife my become the "full time real estate professional" to get your active losses to offset.

I think that would allow us to pay what ever taxes are owed on our jointly filed personal tax return.

@Morenike Arraheem - I would recommend you are VERY clear with the other wholesaler about what you are intending to do, and approach it more like a joint venture. 

Maybe the sewer line is cracked, or being infiltrated at a joint by roots etc.

Make sure they have it under contract in the name or company name and not a long chain of Joint Venturers.Goodluck