Taxed on House Sales/ Profits?

[Garrett F Anderson]

Hello BP community!

I am as inexperienced as they come when it comes to real estate. No one in my family is into real estate. I've read a couple books but I still have millions of questions. I hope to address those questions on here and I look forward to talking with experts and colleagues!

My first question is: is the money from selling a home taxed?

For example: If I buy a house for 75,000, then have 10,000 in expenses to fix it up. I turn around and sell it for 100,000. What part, if any, of that money is taxed? Is my profit of 15,000 taxed? Or is the 100,000 taxed?

Also as a follow up:

If I were to rent the property for 900/ month. Is that 900 taxed? If so, how do I report or pay the proper amount so I don't run into trouble down the road?

Thank you for your time and I look forward to reading the comments!

-Garrett Anderson