Ordinary income + self-employment tax — flips are dealer activity, not investment. Combined rate often 40–50% federal+state. Some flippers structure via S-corp to mitigate SE tax.

House Flipping

How are flips taxed?

Ordinary income + self-employment tax — flips are dealer activity, not investment.

Reviewed 9 August 2026 by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Ordinary income + self-employment tax — flips are dealer activity, not investment.

Expanded explanation

Combined rate often 40–50% federal+state. Some flippers structure via S-corp to mitigate SE tax.

Examples

$60k flip net × ~40% = $24k tax.

How are flips taxed?

Direct answer

Expanded explanation

Examples

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