Hello Investors or real estate professionals.
Questions, I have a problem.
I just wholesale a deal here in California for $20k. Investor paid me and now he wants to issue me a 1099 form for taxes? is he crazy or what? I did this deal with my CA LLC. But this is the first time i hear this.
Investor got the money to buy property and for my fee from a Line of equity (HELOC)from one of his homes.
What is the right answers for this? is okay from him to issue me a 1099? I am sure that assig==ments of contract or wholesaling is to get paid, and whatever i make in the year I declare my own taxes. Help please…
Hello fellow investor.
I personally have never heard of this. Seems like the buyer is either new, trying to avoid tax issues etc, etc.
Try not to let other peoples’ negative/stress affect you.
Maybe the buyer has paralysis by analysis syndrome!!
Somewhere, deep down in your soul you will have a sort- of - what’s right!
Of course you can always ask a real-estate attorney or CPA.
Stay on track and do what you enjoy!!
Ecuaje
What do you care? You did intend to declare the income didn’t you?
This is not the norm but who cares, he did pay you for services sort of, it will assist him in substantiating the expense on his return. Your income is a short term capital gain so it is the same tax rate as your normal income anyway, and it verifies what you actually received.
No biggy, just extra paperwork for the IRS and him.