Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

Then research the BRRRR strategy to hold these flips long-term, generate monthly cashflow and not only avoid capital gains tax, but enjoy the benefit of depreciation deductions offsetting your W2 income tax. As

I do not think I would be subject to capital gains tax as the profits won't exceed 250k and I was using this unit as my primary residence, however to your point the high rates and expensive prices do make me hesitate in wanting to purchase now vs waiting another year or so.

The idea is that the end user pays the sales tax. As

Otherwise it WILL be subject to tax as capital gain.

Since we waited until the end of the year and the original custodian didn't release funds quick enough, she officially converted to a Roth the first week of January, and will now pay the tax as married in a higher tax bracket :(.

Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

But by no means is there slow growth here.Property taxes are definitely a concern especially if you live in a state with high income tax as well.

You might wait to see if Trump reduces the cap gains tax as well.

If it's held for any amount of time, you'll have depreciation recapture tax as well.