BiggerPockets

When you sell is the tax year you should pay taxes in. Selling in January won't make taxes due until April 2013.

It won't change the amount of taxes.

Personally, I always want the closing to happen as soon as possible and don't mind paying some taxes as long as I make good money. Buyers back-out, die, change their mind, get sick, the less time they have to do that, the better it is for you.

On a flip property, you report all your property related income and expenses in the year of sale. Does not matter if you close at the end of this year, if you won't get the property sold until next year.

Flip property bought this year and sold next year, is reported on your tax return as acquired on Jan 1 in the year of sale.

Generally true. Realize that the amount of taxable profit realized on the sale could trigger underwithholding penalties unless you file quarterly estimated tax payments in 2012.

It really depends on which year would be more favorable from a tax rate standpoint. Do you have other expenses this year that can offset the flip income? I usually advice my clients that these scenarios are best dealt with through a year end tax planning analysis. And there are Do it yourself kits out there as well as professional that can do this analysis for you to determine which one is better.

Steve - I'm filing an amended return to move all of the expenses from the previous year to the year of the sale. What verbiage should I use to explain that change?