taxes

4 Replies

I just sold  my first flipping property I would like to know what's the porcentaje I have to pay to the irs thanks

First I would recommend if flipping houses is what you want to do, hire a good CPA.  They can answer all of those questions.  I promise they are worth the money.

Second I believe if you pay Cap Gains you only pay 15%.  This is a good thing.  As your earned income is taxed much higher.  There is also a 1031 exchange that you should become aware of.  If you already closed, you won't be able to use this on this property.

Originally posted by @Reed Starkey :

First I would recommend if flipping houses is what you want to do, hire a good CPA.  They can answer all of those questions.  I promise they are worth the money.

Second I believe if you pay Cap Gains you only pay 15%.  This is a good thing.  As your earned income is taxed much higher.  There is also a 1031 exchange that you should become aware of.  If you already closed, you won't be able to use this on this property.

 Thanks I did the closing a ready and I will find the cpa.

@Reed Starkey @Francisco Torres

Can't 1031 exchange a flipped property. Also, when flipping, the house will be treated as inventory and income will be considered earned income. So the advantageous 15% long term capital gain rate won't apply.

Additionally, you will need to budget for self employment taxes.

I agree with finding a solid CPA.

Originally posted by @Brandon Hall :

Reed Starkey Francisco Torres

Can't 1031 exchange a flipped property. Also, when flipping, the house will be treated as inventory and income will be considered earned income. So the advantageous 15% long term capital gain rate won't apply.

Additionally, you will need to budget for self employment taxes.

I agree with finding a solid CPA.

 Thanks sr.

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