Taxes on a flip

3 Replies

So I'm interested in doing a flip and would like to see if someone can easily explain something.  If I purchase a house for $100k and put in $25k and have $5k holding costs then sell it for $200k in a short timeframe, what options do I have to avoid paying a hefty tax bill at the end.  Put it in a bubble on a one time trial flip.  Not into a 1031 or buy and hold.  A simple flip.  Am I going to get a big fat tax bill for the $70k profit? 

@John Choe ,

I've written extensively on the topic.  It will be treated as self employment income when you sell. You truly need to contact one of us accountants who specializes in the real estate investment.

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if you don't know what you're doing and using idiot tax softwares, yeah. if you have 70k profit, you can afford a cpa, go spend couple thousand for your tax planning the savings you'll get will eventually pay for itself.