Avoid Capital Gains on a Quick Flip Project

[Michael LaMorte]

Hi Everyone,

Is there a way to avoid the significant impact of Capital Gains Tax on a quick flip and sell project?  I purchased a Triplex which I will be converting into Condos and selling each unit individually.  I looked into the costs and state (NJ) rules, etc for the condo conversion and am good to go.  I potentially could have a quick 40-50% gain in executing this strategy.  I want to take the windfall and invest it quickly into another investment property in an effort to avoid Capital Gains Tax.  However the only way I know to do this from a tax strategy is a 1031 Exchange.  Since I would only have this property for about 4-6 months I don't think I will qualify for the 1031.

I been looking but am unsure if there is anything else I could do to avoid the gain tax.  Thoughts? 

Thank you in advance!

[Alan Asriants]

When you do a quick flip you wont be paying capital gain taxes you will actually be paying income taxes. The profit can throw you into a completely different tax bracket. If you owned the property, used it as a rental/business for a period of time - I believe it is 1 year, then you would pay capital gains tax on the sale. I think after 1 year of it being a rental property you can then use 1031. 
Talk to your CPA/accountant