Posted by Jerone on December 06, 2006 at 11:48:50:
Got it. Thanks a lot Bill
Wholesale Deals and Taxes??? - Posted by Jerone
Posted by Jerone on December 04, 2006 at 12:22:44:
I have a question about BirdDogs.
What type of Taxes do BirdDogs have to deal with? How do they go about Filing claims and all that? Would you be able to explain to me the Tax Process when it comes to BirdDog Investors?
Re: Wholesale Deals and Taxes??? - Posted by Bill Jacobsen
Posted by Bill Jacobsen on December 04, 2006 at 15:13:03:
As I understand it, BirdDogs are not investors but are simply providing a service to investors. Their payment for services is taxed as ordinary income. Of course, they can deduct expenses as in any other business.
Bill
Re: Wholesale Deals and Taxes??? - Posted by Jerone
Posted by Jerone on December 05, 2006 at 06:13:26:
Thanks Bill, so I guess I got one more question. If I were to get a property under contract and assign it to another investor for a fee, would the tax ordeal be the same as a Birddogs?
Re: Wholesale Deals and Taxes??? - Posted by Bill Jacobsen
Posted by Bill Jacobsen on December 06, 2006 at 11:27:13:
It is my understanding that it would be the same. You would need to hold property a year to receive a lower rate.
The tax benefit of what you are doing comes from the ability to write off all expenses.
Bill