That's at your ordinary tax rate, but is currently capped at 25%.Even further, as you rent you may end up with passive losses.

Profit from a flip is taxed as ordinary income, including SS/Med, period.

From the IRS: The applicable percentage used to figure the ordinary income because of additional depreciation depends on whether the real property you disposed of is nonresidential real property, residential rental property, or low-income housing.

Tenant shall be charged for all repairs or replacements caused by Tenant, pet, guests or licensees of Tenant, excluding ordinary wear and tear.”

Brit

Account Closed @Brit Foshee I was just referring to the shortened duration of receipt of the agent's commissions if he were able to avoid the traditional lending process.

@Brit Foshee thanks for your quick response I have About 50 Probate letters im about to mail.

We purchased a building in Jan with a bad tenant in Chicago, IL.The previous landlord had a simple 2 page lease without information about security deposit, etc..Now that tenant is suing us for not disclosing where we kept the security deposit funds among other items of missing paperwork found in ordinary leases.

@Bart Weeren You may not get many comments only because you Brits use decimals and commas a little different than us Yanks.

Remember, all money withdrawn from your traditional IRA is taxed at your ordinary income tax rate -- even capital gains.