From my knowledge the short term(less than a year) captial gains tax is 25%. The lorm term(more than a year) tax is 15%. This tax is applied to the profit made on the deal.
The federal income tax rate will be the same as the rate that you pay on your other ordinary income. If you purchsed with the express intent to flip, then you will also have self-employment income tax (payroll taxes) on your profit.
Your state income tax depends upon your form of ownership. If owned by a business entity, then TN has an excise tax on corporate income. If you have ownership in your own name, since TN does not have a personal income tax, you should not have any personal income tax due.
If you are an out of state property owner, your state of residence may tax your TN sale profits when you file your state income tax return.
From my knowledge the short term(less than a year) captial gains tax is 25%. The lorm term(more than a year) tax is 15%. This tax is applied to the profit made on the deal.
Hope this helps.
Thanks,
Nate
The federal income tax rate will be the same as the rate that you pay on your other ordinary income. If you purchsed with the express intent to flip, then you will also have self-employment income tax (payroll taxes) on your profit.
Your state income tax depends upon your form of ownership. If owned by a business entity, then TN has an excise tax on corporate income. If you have ownership in your own name, since TN does not have a personal income tax, you should not have any personal income tax due.
If you are an out of state property owner, your state of residence may tax your TN sale profits when you file your state income tax return.