How much Capital gains taxes should I withhold?

[Brent T Galbreath]

I’m potentially about to enter into my first flip. Could anyone give me insight into how much capital gains tax I should withhold? I should be buying it at 88k and selling it for around 120k. I would really appreciate anyone’s insights

[Natalie Kolodij]

Originally posted by @Aaron K.:

@Syed H. given this seems like a new investor let's clarify that you mean because it is short term capital gains, (unless you are a terrible flipper and held for a year or more) Short term capital gains are taxed as ordinary income and are not tax exempt.

 That is not what he means. 

Flipping houses is consider a business to the IRS and you are taxed as ordinary income subject to self employment tax. 

A flip is not capital gains unless it's kind of a weird one off...you inherit a house and fix it to sell, or get an offer on a rental you are renovating. 

If you buy with the intent to sell for profit that's ordinary income tax subject to SE