Edison, NJ · Member since 2013 · 8 posts · 0 votes
Hi Everyone,
I am a newbie starting out on my real estate adventure. I invested in a fix and flip project last year which will be sold in second week of April. I want to protect the profit from Taxes so I can use it in my next project. Any ideas on how I can do that ?
Also, does anyone know I good Tax Adviser in the Linden, NJ or Union County Area ? I would like to consult one to help me plan my future investments.
Hi @Altaf Essani. You could reach out to @Brandon Hall. He's not located in NJ but you don't necessarily need a tax advisor located here to help advise you.
at this stage there isn't much you can do, you might have been able to do a 1031 exchange depending on how long you held the property, but at this point the best you can do is set yourself up for the next one.
Hi @Altaf Essani. You could reach out to @Brandon Hall. He's not located in NJ but you don't necessarily need a tax advisor located here to help advise you.
Another poster mentioned possible being able to do a 1031. Fix&Flips are not eligible for 1031 exchanges.
You should reach out to an accountant to see that you are calculating the gain on the sale properly so that you are reporting the least amount of income possible which results in less taxes.
You may also be entitled to put a portion of the earnings away into a retirement account.