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81
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23
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Cory E.
  • Real Estate Broker
  • Berkshire County, MA
23
Votes |
81
Posts

Selling first flip, question about capital gains

Cory E.
  • Real Estate Broker
  • Berkshire County, MA
Posted

Me and my partners will be selling our first flip next week and we are trying to see how bad the capital gains tax will be for each of us. There are 3 of us in on the deal; Me, my brother, and our partner(Brendan). We are splitting the profit evenly 3 ways. My name and Brendan's name are on the mortgage and equity. My brother doesn't have his name on it at all. We have owned the property for 3 years, but my partner only used it as his primary residence for 6 months, I used it as my primary residence for more than 2 years, and my brother never used it for his primary at all. I've read that I should be fine it capital gains because its been more than 2 years for me, but how bad will it be for my brother and Brendan? Will they both get hit with long-term capital gains for around 15%?

Thanks!

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