Capital Sales Tax = Bummer
Hey BP Family have you ever done an analysis on a possible property you can flip and realize the amount of capital gains tax you would have to pay? Well I recently did and I am flabbergasted on the amount that I would have to pay. I have been researching on ways that I can utilize that amount for my benefit instead of "giving it away." I would love to hear your advice, book recommendations, and any guidance that you would have for a newbie. Thanks again.
Most Popular Reply
@Tim Moore If you are flipping houses, you unfortunately will be stuck paying ordinary income taxes instead of capital gain taxes and you also won't be able to defer any taxes with 1031 exchange. You can avoid the taxes if you do a cash out refinance but it will be tough to be able to cash out more than 80% of ARV. Depending on how well you managed your rehab costs you may or may not be able to pull out profit with a 80% cash out refinance.