Updated almost 9 years ago on . Most recent reply
Just went under contract (Review Deal & Tax Question)
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.
Most Popular Reply
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...