Does the properties show up under your name with the IRS when assigning contracts and double closing in Real Estate Wholesale? I don’t want the properties I wholesale or assign to end up in my name at the end of the year and be in trouble with the IRS. Someone please explain. Thanks!
Hi, from what I know. if you are doing business as (dba) your own name; a sole proprietorship and not doing business as an LLC. you will have those profits to be claimed by the irs at the end of the year. What i reccomend for you to do is set up an s-corp or an llc and do every transaction under the company name. it takes alot of liability away and protects your name and social.
Thank you richfitz! I will look into that. After doing a few deals, what are the chances of me(or any other wholesalers) be marked as a flipper? I heard other gurus spoke of avoid being marked as a flipper.
The income must be reported either on your return or a corporations. Using an entity doesn’t change that. You won’t get into trouble if you report all your income and use legitimate deductions. Speak with a CPA or enrolled agent that has experience with real estate investors.