We are new to flipping, we've done 2 very successfully but have a question. I do a good a bunch of the work on the flips but am not a general contractor, I do sub out the major work. My question is my wife makes 6 figures a year & will continue her job, flipping will become my F/T job. How do I pay myself so I show income for credit reports, pay taxes & keep everything legitimate? Do I need to start my own business to pay myself? I wasn't sure who to ask, a CPA, my bank, an attorney. Any suggestions would be much appreciated ! Thank you !

Very simple my friend. Every dime you make on the flipp is taxable income. You have to keep a set of books. If you pay 100K for the house, put in 50K in renovations, sell the house for 225K, your income is 75K on the home. It doesn't matter how much of thr work you did, or you didn't do. The 75K is your taxable income. You have to pay your own SS tax, wich is 15%, So you should be setting aside 38% of your profits to cover the taxes on each flipp. So keep that in mind for every 10K you make 3,800.00 goes right to taxes.

Also I forgot to mention. Filing as self employed you will be expected to make estamated tax paments. If not you get hit with intrest and penalties for each non pament of takes. You are required to make 4 quaterly payments to each FED< Sate< and possibly your local municipality. I have been a slef employed Contractor for over 20 years.

Excellent & very helpful information...
Thank you !

Couldn't the gains on the sale be considered "capital gains" at a tax rate of, I believe, only 15%?? Or am I wrong as the the percentage?

I believe the capital gains tax rates are 28% if sold within the first year of ownership and 15% between years 1 and 2. I actually called my CPA today to find out and he was getting back to me after he confirmed the numbers, but he was confident the 1st year was accurate.