Paying Capital Gains Tax

[Terry N.]

When paying Capital Gains, do you pay both Federal (15%) and State (?-varies by state?)

I know, 1031 and defer...but thinking about keeping options open as to how to re-deploy...

Thx.

[Jason D.]

@Terry N. By the forum you've posted in, I'll assume you are flipping houses.

You will pay ordinary income tax PLUS 15.3% self-employment tax PLUS state income tax. A good estimate is 40% - 50% tax on your flipping income.

You cant defer taxes from flipping through a 1031 exchange. You're stuck paying the tax.