1099 S form. Gross sale in wholesale question???

[Tiarra D Taylor]

On a wholesale deal. $50k total sale, $11k profit. Double close process. 1099S form says $50k gross proceeds. Is wholesaler responsible for taxes on the whole 50k even though $11k was all they received???

Or should this form have been split with $39k to true seller and $11k to wholesaler.

I'm a newbie and didn't want to misspeak.

[Linda Weygant]

Quote from @Josh Young:

Ask your CPA, but $50k is correct on the form if that was the sales price, and then your CPA will put $39k as your basis, so your short term capital gain will be $11k. You should also provide your CPA with the settlement statements and account for any other expenses that you incurred.

 Wholesaling is not capital gains.  It's ordinary income and also subject to Self Employment tax.  Other than that, your advice is correct.