Tax strategies for house flippers

[Ian Saingarm]

Let's say you made a couple hundred thousand in net taxable income from house flipping and you're holding some of that cash through the end of the year until you find another property, so 1031 is off the table.  Other than expensing tools, and using sec 179 for larger equipment, are there any other strategies commonly used to defer taxes?  Of course we will run it by our accountant.  Thanks!

[J Scott]

First, you can't 1031 a flip property.

Second, expensing tools doesn't defer taxes.  Those expenses are deductions that reduce your tax liability. 

Third, taxes are owed at the time the income is generated, not the end of the year. So any tax strategies should be implemented before the income is earned (entity structures, etc) or should be generated by other means (tax shelters, etc).

Using either an S corp or a C Corp can allow you to reduce taxes in certain situations. It will depend on both the source of income, the amount of income and your overall financial situation.  You'll want to talk to a tax professional and get his or her recommendation. You should probably talk to an attorney as well if you're concerned about liability impact of this decision.