Tax questions regarding selling a house

[Ashlie Tiscornia]

I bought a house in April for $26000, right now the house itself is worth $80,000. If I did some minor repairs on the house and sold it for let's say $120,000 (that's just an estimate) what would my taxes look like for next year? A little back story, this is my first purchase, I was going to BRRRR this property to start out but I currently don't qualify for a refi loan. So, my plan has changed to use some of this capital to pay off my debt to be able to qualify for a loan. I just don't want all of this to be eaten up by taxes. So I guess I'm looking for advice here.

[Ashish Acharya]

Originally posted by @Ashlie Tiscornia:

I bought a house in April for $26000, right now the house itself is worth $80,000. If I did some minor repairs on the house and sold it for let's say $120,000 (that's just an estimate) what would my taxes look like for next year? A little back story, this is my first purchase, I was going to BRRRR this property to start out but I currently don't qualify for a refi loan. So, my plan has changed to use some of this capital to pay off my debt to be able to qualify for a loan. I just don't want all of this to be eaten up by taxes. So I guess I'm looking for advice here.

This is very hard to explain without knowing which of tax bracket you fall on. Do you have any other jobs? What is your total household income?

IRS might see this as a flip property and charge you ordinary plus self-employment taxes.

If this is the first property you were selling and you’re not gonna do this again and again, you might get away from not being self-employment taxes. But this is something you need to discuss with your tax advisor.
Or if you can show them your intention was to hold this and do a long-term buy-and-hold, you might not have to pay self-employment tax. You might just need to pay short term capital gains tax(Same as ordinary income tax). If you hold on till next April you might have to just pay long-term capital gains tax.