Active flippers are usually treated as dealers, so flip profits are ordinary income subject to self-employment tax rather than long-term capital gains.
When flipping is a regular trade or business, the properties are treated as inventory and the profit is ordinary income reported on Schedule C and subject to self-employment tax.
Because the homes are inventory, the favorable long-term capital gains rates and the depreciation that landlords use generally do not apply.
Income you’ll report on: 1099-NEC.
Most people in this line of work leave money on the table. Here's what we make sure to capture:
If you earn as an independent contractor, yes — self-employment tax is 15.3% (Social Security and Medicare) on your net profit, on top of regular income tax. You deduct half of it, and every business deduction lowers what you owe. We handle the calculation on Schedule SE.
Common write-offs include purchase cost and rehab materials as part of cost of goods sold, contractor and subcontractor labor, permits and inspection fees, interest and points on acquisition or rehab financing, plus a share of your phone and any home-office use. We go through your year line by line so nothing legitimate gets missed.
If you expect to owe $1,000 or more for the year, the IRS generally wants quarterly estimated payments to avoid an underpayment penalty. We calculate them so next April isn't a surprise.
Yes. Your income is taxable whether or not a client or platform sent a 1099. We report it correctly and offset it with every deduction you qualify for.
Tell us what you've got and we'll come back within one business day with the plan and the price · from a preparer who knows your line of work.
Tell us what you’ve got