All Forum Posts by: Stephen N.

i have a purchase agreement on a house that is scheduled to close in a couple of weeks. the contract lists my LLC as the buyer. However, I would like for my IRA to purchase the property instead. Can i just assign the contract to my IRA? or will that be a PT?

If it's a PT, how do i get around it?

0 Votes

Originally posted by Frank Adams:

Regardless of how much state tax you pay you do NOT PAY FICA on flip income, nor rental income for that matter, so you're not approaching the 50% hit. Unless my CPAs have been doing it WRONG for the last 32 years.

self employment tax IS fica and medicare.

0 Votes

Originally posted by Frank Adams:

The OP wrote; "Why would anyone flip houses when you have to pay 50% in income & Self employment taxes?"

50%? You need to turn off the right wing radio. IIRC the TOP (marginal!) RATE is about 35% so even if you made $100,000 or so and it was your only source of income you'd probably pay about $15,000, which is 15%, NOT 50%.

You don't pay FICA and Medicare on this income.

Frank

i'll stop listening to right wing radio if you promise to do a little more research on the tax code.

If I have a full time job that puts me in the 28% tax bracket that means every additional dollar I make above my salary will be taxed at a 28% fed tax rate. Add to that a 6% state tax rate and 15.3% self employment tax rate and you get to 50%.

Self employment tax is the same thing as FICA and medicare, essentially.

4 Votes

Originally posted by J Scott:

Yup, flipping houses is equivalent to buying/selling any other commodity, and you will be subject to self-employment tax on the income you earn personally.

Of course, there are ways to use business entities to potentially shield yourself from some of those taxes (or all of those taxes for some finite period of time), so if you're planning to get into the business, talk to a CPA and/or tax strategist...

what if all the money is earned in an LLC?

and what if I only do a few a year? and it's not something i am doing for a living?

this is a huge deal. Why would anyone flip houses when you have to pay 50% in income & Self employment taxes?

1 Vote

I just read a post where someone said you may have to pay SET on income from flips. Is that true?

0 Votes

can someone either post or email me an example of a PA & addendums used for short sale?

i have used option contract in the past, but i want to start using standard PA.

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I'm worried there will be a big impact. Any of you concerned?

1 Vote

I know i need to put together some squeeze pages but I would like to see what some of you are using.

I would also like to know what you are using to draw traffic to it.

thanks.

0 Votes

ok, so I'm a rookie at this so do laugh at me for asking this.

I am trying to fix up a house to flip and the tile in the kitchen floor that was laid looks uneven in places. the lines are all strait but some of the tiles are higher than others.

My question is this. Is this something that can be fixed one tile at a time?

0 Votes

what are the best PPC key words to use to direct motivated sellers to your website?

0 Votes

All Forum Posts by: Stephen N.

Stephen N. has started 78 posts and replied 154 times.

Post: Calling all self directed IRA experts

Post: Do i have to pay self employment tax on flips?

Post: Do i have to pay self employment tax on flips?

Post: Do i have to pay self employment tax on flips?

Post: Do i have to pay self employment tax on flips?

Post: Sample PA with appropriate addendums

Post: What impact will there be when $8k credit expires?

Post: Please post your squeeze pages and explain how you direct traffic to it

Post: Kitchen floor ceramic tile looks uneven in places. what do i do?

Post: Best PPC key words to find motivated sellers