Rental Property Investor · Cleveland, MN · Member since 2017 · 518 posts · 354 votes
I have a property that I want to flip. I realize that I'll get hit with a lot of taxes when I sell. If I sell it on a contract for deed, with the balloon payment in 3 years, how would the taxes owed on my profit be different? Thanks!
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
8y
A flip is a flip. A dealer must recognize the full gain at the time of the sale. CFD is great for selling a rental. NOT great for selling a flip. In addition, you cannot 1031 a flip either.