Regarding the sale of assets it doesn’t matter what the proceeds are used for. If the proceeds were greater than the cost basis the net profit is taxed at regular income rates in Maryland and at capital gains rates federally. The income from your self employment is taxed by the IRS at your marginal tax rate plus 15.3 percent in self employment tax. Maryland taxes it at your income tax rate. Quarterly estimated tax should be paid to both federal and state.
