Thank you for your answer. Are you able to answer a few more questions or should I start another thread?
If you can answer them on this thread here are my other questions. If not I will start another thread. Thank you again.
3. Will we need to pay self employment taxes (15.3%) on the profit from the flips even though my wife and I both have full time W-2 jobs and the flips are something we did on the side?
4. If so, our total tax bill for the initial flip profit of $60,000 would be… 22% Fed + 8.75% State (OR) + 15.3% Self Employment = 46.05% Tax. Based on that we would owe $27,630 in tax and our profit after taxes would only be $32,370. Does that all seem correct? I want to be sure we are setting enough aside for the tax bill.
5. Are we able to put any of the pre tax profit into a retirement account with an investment brokerage and not have to pay taxes on that part? Example: profit of $60,000, we invest $15,000 (25%) into a retirement account. Now we only show a $45,000 profit that we will be taxed on.
6. Will I need to hire a CPA or go to a tax preparer for the above scenario or will I still be able to use and input all this with Turbo Tax?
On an unrelated note,
Are we able to claim depreciation for our personal home we own and live in? If so, how much can we deduct each year?
