Taxes For Home Sale
I purchased remodeled and am now selling a house in PA, what short term capital gains and other taxes will i have to pay for 2006. I live in NJ which state tax do i pay for this house. Would i be better off setting up a seperate company to flip houses in. Thanks
For your federal income tax return, you have ordinary self-employment income, not capital gains. Report your flip profit on Schedule C and calculate your payroll taxes on Schedule SE.
File state tax returns in both NJ and PA. Take a tax credit on your NJ return for the tax paid to PA.