Cap ex withholding?

From what I know, the sale of the property will trigger a possible tax liability with a required withholding of about 18 1/3% of the gross sales price (fed and state taxes).

They withhold taxes, and pay additional FICA taxes on your $80K salary.

@Tijana Flowers-Harris this is certainly a question for your accountant/CPA, but to my knowledge there are no special tax implications for you when you buy or while you own the property.However when you go to sell, if you aren't a resident of RI you may face non-resident withholding of part of the sale proceeds (see Withholding on Sale of Real Property by Nonresidents and/or the non-resident withholding law itself).Also, you should be aware that apart from tax considerations there may be legal considerations for owning property in RI if you live in Mass.For example, you may also need to register as an out of state landlord with the RI secretary of state and possibly the city of Pawtucket as well.So you'd want to ask your attorney about those and any other one-time and ongoing requirements for owning property in RI if you live out of state.

This salary (minus the withholding) can fund the solo 401k.

I, of course, argued until I was blue in the face and continued to ask to speak to the rep's supervisor until I couldn't get any further, but to no avail.I told them they were imposing a company rule that was a violation of my legal rights and they do not have the legal right to withhold information from me when I in fact have a written legal document signed by the homeowner expressly authorizing me to receive any and all information on the account.B of A informed me that they are "not allowed" to give any information from now on to any other third party unless it is to the realtor.So, if you do choose to deal with Bank of Evil (not me, they're out), the only way you may be able to get any progress is to pose as the realtor.

Hopefully you've been saving the rent you've been withholding to make that a little easier.

@Jeremy Mack - I have always done 1 month SD and have never had to withhold more than a few hundred dollars

I want to withhold that $400 too, but my husband won't let me.We go to settlement with the bank on Wednesday 5/17 and they want him paid ASAP, but require a "Paid in Full" letter signed before we release the check to him, and idk what to do.Thanks in advance.

Seven months is a long time to fix and flip, which doesn't help with holding costs either.