Holding for a year vs selling before a year

[Ben C.]

Hello All! What are your thoughts on holding flips for just over a year to be able to take advantage of the capital gains tax (vs selling in under a year and being taxed at your ordinary income rate)? Many people have differing views. Look forward to a great discussion.   Thank you!

[Linda Weygant]

@Russell Brazil, @James Masotti and @Dave Toelkes are correct.

The IRS does not care if you buy a house, add parts to it and sell it or you buy bread, lunch meat and mayo and sell sandwiches.  As far as they are concerned, it's the exact same business model.

You may get away with selling one sandwich, but not one house.