Just went under contract (Review Deal & Tax Question)

[Jered Collins]

Just went under contract today on a house in Richmond, Va.  It's located in the South Richmond District of Richmond, Va.  

To the facts...

4 BR 3 Full Bath

2,497 Sq Ft

Two story brick traditional 

Contract Price = $70,000

Realtor Fee @ buy = $3,000

Realtor Fee @ close = $4,900

Closing Costs = $2,100

Holding Costs = $5,700

Estimated Repairs = $35k

AVR = $160,000 + 

Estimate Pre-tax Net Profit $38,000

Question, what tax rate do I use for this property if I'm fixing and flipping less than 6 months.  I'm in the 28% marginal tax bracket now.  

[J Scott]

If you're in the 28% marginal tax bracket, you'll likely pay 28% in taxes, plus potentially another 15.3% in FICA (self-employment) taxes...