Thinking ahead to tax season

[Dennis O'Loughlin]

My wife and I are just about to finish the purchase of our second ltr.  However...they are both in a different state.  When it comes time to file taxes how do we do that?  Do we have to file both in the state where we are licensed and the state where the properties are?  Thanks for the info.  

[Michael Plaks]

For tax reasons, there may be a benefit of waiting or of not waiting. Your taxes are lower in the year when you only have one profitable flip instead of two, for example.

That said, waiting is ALWAYS a bad idea, or rather a risky one. Why? The property may get damaged by vandalism or natural disaster, we may enter another Covid lockdown, the loan may become unavailable or too expensive, your buyer may lose his job, divorce, get sick, die or simply change his mind. Even your own circumstances may change.

Lesson: close when you have a good deal at hand, regardless of tax planning.