If you bought it under market and resold it a month later, that is buying for the purpose of reselling.Long-term indicates investment, Short-term is ordinary income, think of it just as you would capital gains and losses.If a dealer converts a property to a rental until they sell it, they are subject to SE tax on the income unless it is in an entity.This based off of intent, which is why you must have different entities and why you MUST plan, plan, plan.

I would consult legal counsel before acting but I respectfully disagree to say it is an SEC violation per se to mail to a private money list.True if you offer a specific percentage return or offer participation in a specific deal you may NOT legally do so.

Does it make more sense to pay SE only on the 28k+30k?

While I don't do the calculations, per se, the time/money tradeoff is always in the back of my head...Remember, there are two way to increase your hourly earn:1.

I hold title in the name of the 401K (with high liability insurance) until the place is sold, not in an LLC per se.

Include the profit on a schedule C to make it subject to SE tax.

Very cool - glad to se eyou over here and leaving great comments.

Does anyone have any tips for SE Michigan?

Generally, all non-rental income is not subject to SE tax.If it is multi-member and no election is made it is taxed as a partnership.If it is single or multi-member and Form 2553 is filed it will be taxed as an S-corporation in which distributions may be made and not necessarily all income will be subject to SE tax.If it is single or multi-member and Form 8832 is filed it will be taxed as a C-corporation which is taxed and dividends will be taxed personally as well.

Led the SE region of the country when Met went into P&C.