Selling your own flips and taxes

[Sarah G.]

Hey everyone,

I recently became a real estate agent and am selling my own flip. My question is for taxes is it better to not take commission and take the profit as capital gain or take commission and it be a taxed like income. I can also take as much commission as I want as I’m the selling and it will show less profit. 

I was thinking of making my commission more. Currently with my spouse we are in the 32% income tax bracket range. Some specs of the house would be it’s selling for 358k

Any help would be greatly appreciated!

Thanks! 

[J Scott]

I'm not a tax professional, but you will likely pay the same amount in taxes whether you take the money as flip profit or commission.  They will both be taxed as ordinary income at your marginal tax rate (and potential self-employment taxes as well).