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Tax, SDIRAs & Cost Segregation

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Robert Miller
  • Real Estate Investor
  • Highland, NY
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Tax Question

Robert Miller
  • Real Estate Investor
  • Highland, NY
Posted Nov 30 2009, 09:41

I`m buying an REO with transactional funds and doing a double closing to flip it immediately.I`m buying for $43k total,reselling for $82k.Now the transactional funds are paid back pretty much at the end of the double closing.My question is am I taxed on the $39k I`m making on the deal,or am I taxed for the entire sales price of $82k? If the latter,how the hell do wholesalers make money on deals? It`s over $27k in taxes on the $82k so that would kill almost all my profit.Thanks in Advance

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