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Updated almost 6 years ago on . Most recent reply

User Stats

63
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Jason Smith
  • Weatherford, TX
42
Votes |
63
Posts

Must I pay Self Employment tax from doing part time RE

Jason Smith
  • Weatherford, TX
Posted

In the midst of doing taxes this year my CPA says she feels that I need to file as Self Employed  because of the amount of time I spend doing RE.  I only do this part time and have a full time earned income job.  I flipped 1 house last year and added 2 rentals.  I am not trying to pull one over on the gov but filing this way will cut my refund in 1/2 as opposed to filing as capital gains and not SE.

So what are your feelings as to the best thing to do here?  What is actually required vs what is best practice?  How should I proceed?

thanks in advance

  • Jason Smith
  • Most Popular Reply

    User Stats

    1,407
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    754
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    Lance Lvovsky
    • Accountant
    • Fort Lauderdale, FL
    754
    Votes |
    1,407
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    Lance Lvovsky
    • Accountant
    • Fort Lauderdale, FL
    Replied

    @Jason Smith

    If intent was to flip that is subject to self employment tax. If intent was to hold for investment then no SE tax.

  • Lance Lvovsky
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