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happyardy

tax on a flip(without double closing)

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Dave,

I recently closed on a deal(pure option) where I got paid through a letter of direction that the seller had given her lawyer, something on the lines of "I, Ms. Seller authorize my attorney Mr. Lawyer to pay Mr. Rahul $XXXX from the proceeds of the sale of the property".

So, basically when the seller and buyer closed, I got the difference in the prices. I was paid from the seller's side. I didnt go on the title nor I have been on the P&S agreement. There was no double closing.

 

When I do my taxes next year, how would this be treated ?

 

thanks

- Rahul

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Ordinary self-employment income. Report on Schedule C (1040) and Schedule SE (1040).

 

 

Thanks, Dave.

- Rahul

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