Is passive rental income subject to Self Employment Tax
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?