capital gains tax!!

[Kairaba Burson]

im new and learning the ropes. i see a lot of people rehabbing and prefer it. are they getting hit with capital gains taxes or is there a way to lesson the impact of them? in a 15% bracket do you just get use to ex: 20K profit less 4K taxes. total 16K? or am i missing something?

[J Scott]

If you're flipping, you won't pay capital gains tax.  You'll pay ordinary income taxes (at whatever your marginal tax rate is), no different than if the money were earned from a regular W2 job.  In addition, you'll pay self-employment taxes on at least some of the net income you generate.

Flipping generates big paychecks (when done correctly) but will also generate big tax bills.