Can someone tell me if the profits from a flip would be considered a capital gain or ordinary income? I have an LLC set up for my rental properties that filters to my personal tax return as passive income via a K-1. If I flipped properties in my LLC, what would the profit from the flip be considered? Income or capital gain (If gain, short or long term?) I ask because I have some large long and short term capital loss carryovers from bad stock investments. I was wondering if by flipping I could offset some of these losses, hence I would not have to pay taxes on the profits until I ate up my capital losses. I know most of you are not CPAs and will take any replies with a grain of salt. If would be nice to hear from one of the accountants in here too. Thanks!
Edit: It appears I posted this in the wrong forum and not sure how to move it?
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