Posted by Greg on October 23, 2003 at 10:22:50:
For question 1, the self-employment tax kicks in if you do more than a couple of deals a year. If you get started soon, you could likely get away with just treating a deal or two in 2003 as short-term capital gains. You’ll need to talk to an accountant to determine what the exact number is.
From then on, the self-employment tax is around 15%. (There is a max on this, so if your salary plus Lonnie earnings surpass this, the rest is exempt from the 15%).
There are a lot of variables, but I’d say 45% is good if you want a single figure.