Here is a simple example:Let's say ordinary income is 10k for a single person.

@William Morrison unless you are talking about a large multi family or some out of the ordinary building if you paid $1000 for a lead inspection you need to find a cheaper inspector. the three hundred number is much more typical.

Just trying to get a sense of this.If I were to flip one house that I bought under my name and sell under my name.And if I have a regular full time w2 job.Would that mean that the flip would be considered short term capital gain and taxed at regular ordinary income but that I would not be considered a dealer and - as such - would not have to pay all the self employment taxes involved with that?

I explained that I will enforce the lease and any damages, or uncleanliness above and beyond ordinary wear and tear will cost the Tenant. 

I'm a kiwi who currently lives and teaches in the UAE and is married to a Brit.

A 1031 is for "Like Kind Exchanges"Like a truck for a truck, rental property for rental property, building for a building.A flip is an ordinary income process subject to incomes tax and FICA, and specifically mentioned in the code as not eligible for a 1031 exchange.

So I wouldn't have to do anything out of the ordinary on the selling end?

Gotta get to that sweet long-term cap gain rate  vs ordinary income!  

His contact at the bank said the long term outlook for Brits buying Spanish property is likely to remain similar, however, short-term, the mortgage LTV available to British buyers could see a reduction of as much as 50 percent for new-builds or resales, but rates are likely to remain high for bank repossessions, which he believes are likely to stay at around the 100 percent mark.With European Central Bank interest rates at historic lows, European banks are continuing to offer very cheap mortgages, including to non-resident buyers.

So if she sold it today, after two years of ownership, she'd have $14000 of ordinary income/depreciation recapture and $61,000 of capital gains.At that level, she is probably in the 25% tax bracket and her capital gains are in the 15% bracket, but it could be at 28% and 15%.