taxes on a rehab or flip
I am interested in getting into flipping or rehabs. I read a lot of posts by r2d2 up in Canada, but one thind I havent heard info on was lets say I buy the home for $150,000 and I put about $10k into it (just making the numbers easy here) then I sell for about $210,000 so I pocket that $50k and move onto the next house. Lets say the end of the year comes and I have so far made $50k in profit. I live in NY. I am not sure if anyone is familiar with tax laws here but will I just pay tax on that $50k as if it was regular income? Maybe totaling $10k at the end of the year?
I can imagine people that flip or rehab houses get hit with big taxes at the end of the year. Anything I should know about would be great. Thanks in advance!