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).

So complicated question...If me and my 2 partners set up an llc (declare to tax as pass through partnerships) for the sole purpose of flipping homes and assuming we each make a profit I’d 10k per year.

Not sure exactly where you are but if you still meet the test of having lived there for 2-5 years you may be able to sell without paying any tax.  A

The rent will narrow down to a range and that's where you'll be.Property Tax:  in most places there's a county tax + a city tax. 

Hey all,I have an interesting situation that I will need to deal with next year. My father is a year from retirement and has decided to withdraw his 401k to help me buy some additional investment properties. The deal ...

So you pay federal and state income tax as well as self employment tax on that income.

I'm curious if people do cash out re fi to their max LTV and then sell there place to avoid capital gains tax as much as possible and only pay on what's left over.

Not educated on your market but I would assume if your looking to grow your portfolio having roughly $ 155k ( after you pay 20K LT Tax ) a great jumpstart no matter where the market.

I was reading the VT state tax laws and while the language somewhat confuses me it looks like I'm subject to their state income tax as well as the federal cap gains for my tax bracket.

However, there might be some tax benefit in your situation to treat this as a partnership (LLC tax as a partnership ).For instance, this treatment could reduce a married couple's SE tax bill when one spouse has wage income above the Social Security tax ceiling ($128,700 for 2018).