Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Pennsylvania Real Estate Q&A Discussion Forum
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 6 years ago on . Most recent reply

User Stats

11
Posts
2
Votes
Anton Bachuk
  • Erie, PA
2
Votes |
11
Posts

Holding a flip long enough for avoid higher taxes in PA?

Anton Bachuk
  • Erie, PA
Posted

I am looking to get my feet wet in real estate and found a property that is in need of renovations in western PA. One thing I'm trying to figure out is just how quickly can I flip it. From what I understand any profit from the property I unload under a year would be considered "investor income" and can be taxed up to 37% and anything over a year would be considered a long term capital gain which falls in 0-20% tax bracket. Is this accurate? 

Most Popular Reply

User Stats

3,567
Posts
2,689
Votes
David Krulac
  • Mechanicsburg, PA
2,689
Votes |
3,567
Posts
David Krulac
  • Mechanicsburg, PA
Replied

@Anton Bachuk The PA income tax is the SAME less than 1 year and more than 1 year at the flat rate of 3.07%, so for PA doesn't make any difference.  However for Federal Taxes the difference between Long Term Capital Gains more than 1 year versus Short Term Capital Gains less than obe year can be as high as 20% additional tax (15% versus 35%).

Loading replies...