First flip... tax best practices....?

[Carson Wilcox]

So... first flip is in construction phase... I hope to have some good profit at the end..

For all of you tax geniuses.. 

I am looking for the idiots guide to taxes on your first flip. I am not to the point of LLC and all that... first flip... shooting to do 2 over 2017-2018 at least... but 2018's taxes will likely have no more than 2 on it. I want to be legit, but not overly generous... I closed 9/26/17 and have a bunch of $ in 2017.... spent... I assume I write that off in 2017...? Or do I write that off in the year I sell it?

Love to hear book or blog recomendations.

[Basit Siddiqi]

I think your profits will be subject to Self-employment tax since you are doing the activity in your personal name(without an S-corp).

Self-employment tax is a federal concept. Can you please site the state law that mentions that self-employment tax becomes a think when flipping moves from sideline to job?

Depending on your tax bracket - you should save the following portion of your gain to taxes

Federal income tax(10% - 39.6%)
California Income Taxes(1% - 13.3%)
Self- Employment Taxes(9.1% - 15.3%)(Depending on if you have a W-2 job and already over the social security wage base)