Anonymous_
Level 15
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Deductions & credits

The federal income tax rates do not vary based upon zip code.

 

Short-term capital gain (capital assets held for one year or less) is taxed at your ordinary income tax rate.

 

Long-term capital gain (capital assets held for more than one year) is taxed at capital gain tax rates which are generally 0%, 15%, and 20% depending upon your taxable income.

 

See https://www.irs.gov/taxtopics/tc409

 

Note that if you are conducting this type of activity, flipping houses, with relative frequency and on a short-term basis, the IRS might consider this to be a business and the houses to be inventory. In that event, the gain would be considered ordinary income and subject to self-employment tax.

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