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..
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.
@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
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? 😅
@Chase Romine yes, 50% of gross profit. Paid at tax time with your regular income taxes
Find a CPA.