I just completed my first wholesale deal. I want the set aside my taxes.
How much should I put aside?
It depends on how much you’ll make this year. It’s your state/fed tax % rate plus 15.3% self employment SS/med.
@Jesse Davis this all depends, would chat with a CPA or your CPA. The variables are income out of the year, if you have started an entity for it (LLC, S-Corp, etc.), and what are any other tax liabilities. A quick rule of thumb is hold off 30% of the commission for taxes. Would dive deeper for your own situation!
This is a good question for your CPA as he will know what marginal tax rate you are in.
You should set aside federal taxes, self-employment taxes and potentially state income taxes.
You may want to consult with your CPA if you are required to pay estimated tax payments.