Buy, Fix, Sell, Rehab Tax Burden Question, Rates?

[Michael J.]

Hello,

Just wanted to ask this to make sure I understand the tax ramifications correctly before venturing into a buy, fix, sell property.

If I owned the property and sold it in under a year, lets say 6 months would it be considered Short term capital gains tax?

If my tax bracket is 28% and state is 4% does that mean I would owe 32% on all profit or do I have to pay self employment taxes also?

I am just trying to get an idea of what my total tax burden will be on the profits of a short term fix and sell deal. Thanks.

[Jacob A.]

Aren't we forgetting the fact that half of the SE tax is also taken as an above the line deduction on the first page of your 1040. I like to focus on the positives!