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Updated about 5 years ago on . Most recent reply
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What are my short term capital gains tax?
My wife and I are in the 22% tax bracket for our employment income. Is the rate my short term capital gains taxed at dependent on the amount I make from the sale of my flip or is it taxed at my income rate (including the income from the flip)?
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The short term capital gain rate is determined by your total taxable income. Your wages and flip less deductions come up with that marginal rate. Short term capital gain rates are the same as your ordinary income rates.
You will also need to factor in the self-employment taxes on the flip. Which is an additional 15% on the net income from the flip.