Newbie Tax Flip question

[Jake Lippert]

Hey guys...long time listener first time poster. Here’s my problem. My wife and i bought a house in foreclosure at an auction with 100% intentions of moving in to it.  We bought the house for $250k. The house needed some TLC and we had planned on putting $75k into it and put off remodeling an additional $25k until 3-5 years down the road. Things have suddenly changed in our lives and now we’ve decided to sell it. So we are putting the additional $25k into it for a complete very unintentional flip to finish it out and sell it. At this point we will have $350k in it. I think we can sell $400k (low side) to $450k (high side). Afternoon closing cost of let’s say $15k we will net $35k-$85k. How will we be taxed on this gain and is there any tricks or tips you could recommend?  It’ll be roughly 6 months of owning when we decide to list. Thanks in advance.