Can You Avoid Self Employment Tax?
We take house "Sub-to" and it takes 12-18 months to turn over the houses. We had an S-corp and will now be doing this in an LLC. (due to statetaxes)
My accountant has said due to the turn over of houses, I would need to pay the self imployment tax 15.3%?
Is self employment tax close to dealer tax?
That 15% is after all expenses correct? (business trips, new computer, etc.)
Thanks to all
Sire
Self-employment taxes are payroll taxes. They are the same taxes that your employer deducts from your paycheck for Social Security and Medicare, then matches.
Because you are your own employer, you pay both the employer share and the employee share of the taxes.