Do you pay taxes on net profit from a flip or the total price

[Jesse Soriano]

When doing a flip 100% all cash.

Do you pay taxes on the price you sell the house for. Or just in the money that you made profit on?

Let say you bought a house for 30k

Spent 20k on rehab

And sold for 70k

Do you get taxed on 70k

Or the 20k profit you made?

[Joshua D.]

@Jesse Soriano

I am not a CPA but this is a tax question I think I can answer....

You pay taxes on your net income. In your example 20k is what would be added to your adjusted gross income and would be taxed.

Now some CPA will come on here and say...IT Depends...