TAXES AND WHOLESALING

Im still in the beginning stages of setting up my planning. I have asked this question and havent gotten a answer. When wholesaling, when you go to closing, is the ssn or ein number required. Im setting up a trust and wanted to know if a 1099 is given to you at closing, or do you handle taxes yourself as a complete different issue.

Edited: 06/26/2010 at 09:52AM

Ryan Webber

Wholesaler · Amarillo, Texas

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Icon_minipost Oct 08 '09, 01:47 AM

Different title companies/agents deal with it differently.

I've had some title agents who require nothing from me and tell me I have to report it myself. Others do report it, but I don't think its a 1099, and its definitely not at closing. Calling the title agent/company that you will be dealing with is the best idea for that one.

Edited: 06/26/2010 at 09:58AM

Rich Weese

Real Estate Investor · sioux falls, South Dakota

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Icon_minipost Oct 08 '09, 01:51 AM

Not an acct, but I believe it IS a 1099 that goes to IRS on your closing. Rich

Edited: 06/26/2010 at 09:58AM

Troy Michaels

Real Estate Investor · Atlanta, Georgia

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Icon_minipost Oct 08 '09, 02:25 AM

Originally posted by Ryan Webber

Different title companies/agents deal with it differently.

I've had some title agents who require nothing from me and tell me I have to report it myself. Others do report it, but I don't think its a 1099, and its definitely not at closing. Calling the title agent/company that you will be dealing with is the best idea for that one.

thanx.

Edited: 06/26/2010 at 09:58AM

Jon Frame

Wholesaler · Nazareth, Pennsylvania

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Icon_minipost Oct 08 '09, 03:36 AM

I get a 1099 at the end of the year from my buyer's. If you don't have an EIN you would have to give them your SS number, so it's a good idea to have that EIN.

Edited: 06/26/2010 at 09:59AM

Jeff Logue

Real Estate Investor · Select a State

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Icon_minipost Oct 09 '09, 01:36 AM

And setting up an EIN is SUPER easy. An accountant can definitely help you with this, but the process only takes about a 10 minute phone call, and then they send you your number by mail (at least in my state).

Edited: 06/26/2010 at 09:59AM

P NW

· OR

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Icon_minipost Oct 09 '09, 03:28 AM

Believe me, the title company reports the sale to the IRS. You will probably get your tax paperwork at the time of closing, rather than having it mailed to you at the end of the year.

Edited: 06/26/2010 at 09:59AM

Ryan Webber

Wholesaler · Amarillo, Texas

1887 posts
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Icon_minipost Oct 12 '09, 03:41 AM

Believe me, they don't always. I've done about 500 closings and 90% of them my title agent said quote "We will not report this to the IRS. It is your responsibility to do that."

I've NEVER received any IRS tax paperwork at closing or even at the end of the year. I've always had to give my accountant numbers off of my HUD-1's, but I've never received anything from the title company. I do remember that a couple times when I closed with different title companies that I had to sign an IRS form, and they said they were going to report it, but they did not give or send me a 1099 or any other IRS paperwork.

Again, I have NEVER received a 1099 or any other IRS paperwork from the title company.

1099's are for reporting payments to NON-corporations except for payments for legal advice. If you are buying or selling in a corporate entity then you aren't going to get a 1099.

Again, checking with your title company/agent and/or accountant is your best bet.

Edited: 06/26/2010 at 10:02AM