Quote:
Originally Posted by gunboat82
The highest federal tax rate with self-employment is just under 42%. That's nothing to sneeze at, but why are you adding property tax? That's not based on income at all.
If you choose to live in a $3M house... yes, you'll pay a lot... but your income doesn't require it. You could choose to live in a modest house and fill it with baseball cards.  |
That you could.
Luckily, the property tax is less than 1% of my income. So you can leave it out if you prefer. Won’t move the needle very much.
But don’t forget state income tax and local and county income tax. Those add another 14% to your federal tally.
Plus the phantom income is a real kick in the shorts.