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Tax, SDIRAs & Cost Segregation

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Yas Tahir
  • Investor
  • Houston, TX
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Is passive rental income subject to Self Employment Tax

Yas Tahir
  • Investor
  • Houston, TX
Posted Nov 11 2017, 12:57

I am a passive real estate investor (no full time job) and own a few rental properties tru my LLCs. I just noticed that I pay Self Employment Tax on the total amount of net income? My return is prepared by my CPA. Is this correct? I will also start flipping and I am aware that that will be subject to capital gains. My questions:

1. Is rental income subject to SE tax?

2. Is capital gains also subject to SE tax?

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