Taxes on sell of property

[Tony Roddenberry]

I just sold my first flip! Was able to get a great deal on a MH and turned it for a great profit.  Was all in at just under $50,000 and sold it for $75,000.  Now for the sad part..... TAXES. How much should I set aside? I took a big pay cut to position myself for doing real estate so I'm guessing my net income will be under $75000 unless I can find another good deal. If that happens I will still be under $100,000 filing married/joint. I believe Georgia has a 6% rate.

[Brandon Hall]

Without knowing anything about your situation, you should probably aim to set aside roughly 35% of your net income after deductions. This assumes a 25% tax bracket, a 6% state bracket, and a 15.3% self-employment tax that is not being avoided via an S-Corp. You'll notice that the sum of these numbers is actually 46.3%, but I'm saying 35% due to how your tax liability scales as you move up tax brackets.