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Tax, SDIRAs & Cost Segregation

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Mike Miller
  • Rental Property Investor
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56
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Capital gains with intention to rent?

Mike Miller
  • Rental Property Investor
Posted Jul 8 2019, 09:30

Hello BP,

So here is my situation:

I bought a REO in January 2019 with the intention of renting it out for a little over a year and then selling it. Long story short, my tenants only lasted from February till June and then bailed on me. If I sell the house in 2019, will I pay capital gains tax or will the proceeds be treated like regular (W2) income? My CPA is telling me that it will treated as short-term capital gains but I'm wanting to get a second opinion.

Thanks for looking and contributing!

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