I have been doing my research for the past few months and I have been trying to investigate all aspects of "the flip." One question I have is- How much do most of you generally pay, percentage-wise on captial gains. I am aware of the 1031 exchange, but how much are you pocketing after all is said and done?
Well it completely depends on your income tax bracket. "Flips" or anything you resell within a year of buying it (without utilizing a 1031) is taxed as ordinary income.
Thanks for your response. I am a school teacher/weekend remodeler. My yearly gross income is roughly 45k. Let say that I sold a home for a 50K profit. Could you throw out an estimation?
I don't know the tax brackets, but I'm sure you could find them at www.irs.gov.