Updated almost 6 years ago on . Most recent reply
Tax Questions Regarding "Unplanned" Flip
Earlier this year my wife's uncle unexpectedly passed away. Her remaining Aunts and Uncle were handling the estate. They were much older than the deceased Uncle and were struggling with having to be at the house for the extensive work it would take to get it ready for sale. I bought the house from them with the intention of turning it into a rental. Unfortunately I needed to sell it to cover another investment home and now I'm reading about possible tax repercussions because I essentially am flipping the house after owning it for about 6 months. I paid $275K and sold it for $352K. It's scheduled to close in a few days and I don't know if I could do a 1031 exchange at this point. Does anybody have any advice on how to avoid a major tax hit. I will of course verify any advice/suggestions with my accountant. Thanks in advance.