Capital Gains, etc...
I have two questions...
I read somewhere that you pay taxes when you do a flip but not Capital Gains tax if your intention was to flip... can someone explain?
Here's somethings we are looking at.... we have held a house for 1+ years and have slowly remodeled it - never thought we were going to rent always have been intention to flip... so when we flip (we do have a corporation 99% of our business has been rentals) what do we look at for taxes etc...
Here's an example of what we are looking at:
Purchased house for $10k
Put $40k into house
Sell house for $90k with a realtor of 6% commission
We are in south/central Iowa.
Another thing... we have another example:
1. We have a house that has been rented for 5 years.
Bought for $30k put $10k into it and want to sell for $60k realtor 6% commission.
Is the tax different from selling a rental compared to selling a house that was going to be a flip.
I am looking at doing more flips but I am trying to figure out how I would get paid, capital gains, etc...