All Forum Posts by: Brady Lucero

Can't edit my post but I wanted to be a little more specific:
I've been worried I'd be paying 28% capital gains + federal + state + self employment all on total profit which would be like 70%ish
Good to know that's not the case!

I had no clue that these taxes are progressive. This is excellent news...
Being anything over $16,000 in my state is taxed the max 6.9%, progressive rates won't help much there.

One more question:
Are self employment taxes progressive or fixed?

Awesome news, I've been worried I'd be paying 55% of that $90,000 in taxes.
Thanks so much for the info.

Hello everyone,
I'm a 25 year old Journeyman Carpenter and my wife is a Realtor. We have successfully "flipped" two homes on the side now. We lived in each house two years to avoid capital gains. I did 100% of the work myself, made $40,000 on the first home and $30,000 on the latest.
Each of these homes produced a profit as large as my yearly salary and required MUCH less labor then a standard 2000 hour work year. Due to this I've decided to work 3 more years, build up a sufficient bank roll then quit my job as a Carpenter & become a full-time Flipper.

Of coarse I have tons to learn before embarking on this but I have all the enthusiasm and motivation in the world!

Would love to soak up all the knowledge I can so any advise would be greatly appreciated!

Here's a few before and afters of my latest house:

This was before all the siding was done...Haven't taken an updated shot yet.

I'm a 25 year old Journeyman Carpenter and my wife is a Realtor. We have successfully "flipped" two homes on the side now. We lived in each house two years to avoid capital gains. I did 100% of the work myself, made $40,000 on the first home and $30,000 on the latest.
Each of these homes produced a profit as large as my yearly salary and required MUCH less labor then a standard 2000 hour work year. Due to this I've decided to work 3 more years, build up a sufficient bank roll then quit my job as a Carpenter & become a full-time Flipper.

Of coarse I have tons to learn before embarking on this but I have all the enthusiasm and motivation in the world!

My Question:
Say I flip 3 houses in a year and earn $90,000 in total profits. I realize uncle same is taking 25 ish% for capital gains since I'm not holding them over a year but will I also have to pay federal and state income tax and if so what's the total % taken out of my "flipping profits" for taxes?

* I will be contacting an accountant... right now I'm just trying to soak up all the knowledge I can