Capital Gain into a New Rental

[Flavio Espinal]

Hi BPs,

If I flipped a property, and use the entire gains from the sale to buy another property but that second property I decided to do buy and hold.

Do i still have to pay taxes on the capital gains from the first property?

[John Thedford]

Yes if it was simply a flip it is taxed as ordinary income. Buy and hold will give you tax advantages not available for flips.