I had to write a big check 5-figure at tax time. And that’s after paying a lot in quarterly taxes. But you know what? That means I did really well. And I don’t mind paying taxes.
Well, okay, I don’t like it and I do minimize my tax footprint. But I love our country, and I’m happy to be a contributing tax payer.
Flip income is not as tax friendly as buy and hold income.
Flip income can be subject to federal income tax, state income tax and self-employment taxes.
You should have benefited this year with the 20% qualified business income deduction. You should also talk to your accountant if there is ways to reduce the amount of self-employment taxes you pay.
However, generally yes, having to pay more in taxes isin't the worst thing as it does mean you had a good year. It is always good to see if there are ways to minimize the amount of taxes you pay.
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