Taxes on my first flip
Hello,
I'm to the point where I'm ready to dive in I believe. Just need to find the right deal and I'll be one of you all. I do have a question about taxes on the first flip profits (assuming there are profits)
I read that if you flip a property within a year the profits made are taxed as short-term capital gains, at the same rate as ordinary income? possibly have to pay medicare and SS as well?
Can anyone explain this? Maybe also some tricks to use here? And please try to explain it as though you are talking to someone with no experience with flipping or taxes for that matter.
Thanks!