Los Angeles, CA · Member since 2009 · 717 posts · 50 votes
Hello, I've made some money through flipping properties for 2012 and wondering if there is a way to offset some of the taxes? Would it be a good idea to buy a commercial property or keep a house for rent before 2013 to offset some of the taxes? Any advice or strategies would be appreciated. Thank you.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
14y
Tax planning involves some thinking prior to acting - in this case, the sale is the event that triggered gains that then trigger taxes; so before the sale, you should have consulted CPA / tax planner to determine options to minimize tax impact.
Of course, since you say you were flipping, a 1031 exchange never was an option. But that brings another line of thinking: best entity for flipping - there is already an existing BP thread on this matter. Going forward as a flipper, this might actually be your best line of minimizing tax impact.