15% Taxes for flipping?
5 Replies
Chase Romine
Rental Property Investor from Kentucky
posted over 1 year ago
Hey everyone,
New to this. (Read a few books) but was wondering about the 15% tax on flipping homes since your considered a business. Is it 15% in every state? If not, how do I figure out what all my charges will be? Not sure who to talk to..
Wayne Brooks
Real Estate Professional from West Palm Beach, Florida
replied over 1 year ago
Flipping profits are ordinary income, taxed at whatever your personal rate is that year (not a straight 15%) plus 15.3 % ss/med self employment tax (both sides) for federal taxes....your state tax will vary.
Jason D.
Rental Property Investor from St. Petersburg, Fl
replied over 1 year ago
@Chase Romine your total taxes (federal and state), depending on your state, will be about 50%. That's what I would budget for taxes on flips
Chase Romine
Rental Property Investor from Kentucky
replied over 1 year ago
50% of my total profit right? Is that expected to be paid at the end of every year? I have no clue who to as these questions too? 😅
Jason D.
Rental Property Investor from St. Petersburg, Fl
replied over 1 year ago
@Chase Romine yes, 50% of gross profit. Paid at tax time with your regular income taxes
Wayne Brooks
Real Estate Professional from West Palm Beach, Florida
replied over 1 year ago
Find a CPA.