I do this in tax year 2018, what is the profit I pay taxes on in 2018?

I’ve been able to identify some very profitable off market deals this way.Good luck

Anyway they have proposed a continuing education package that is 25k but me and my coworker can split it. just got into investing earlier this year and have only done one deal which was a flip and I profited a great sum from it.

This does not sound profitable.

If you claim money loss, IRS will want to know about your deductions and why you are not making profit. 

You are talking about a business with a low initial cost and a short period before profits are seen.

My main interest in this forum as I slowly transition from cubicle dweller to independent investor is to build up my network and contacts and perhaps eventually find the next opportunity.Other than RE I'm a computer nerd for my day job, other interests include building electric vehicles, electric vehicle advocacy, bicycling, outdoorsy stuff, and vintage land rovers.  

Well I really detested the last business I was in (though profitable but way too many employees) I like this one so far but these first steps.... :)Thanks again. 

I these situations the exit strategy is determined that property is to be sold in year x.If it’s 50/50 then in many instances costs and profits are split.

Leaving the same investor split of the profits in conjunction with the more conservative assumptions will naturally lead to a lower (and more believable) projection of investor return.