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63
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Chad McIver
  • Appraiser
  • St. Charles, MO
21
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63
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Help with tax liability of first successful flip!!

Chad McIver
  • Appraiser
  • St. Charles, MO
Posted

I just received a accepted contract on my first flip, in St. Louis City, MO. Happy with the way it turned out and the profits. Still have to get through inspections.

But List price $99,900, sold for $98,000, DOM 70. Total expenses including staging, real estate commissions, concessions is $78,500, for a taxable profit of $19.500!

I plan on moving to another flip, and do not want to get stuck with all the capital gains. Suggestions on strategies to use moving forward?

Thanks for your time!

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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
13,512
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23,418
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

Chad, it's not capital gains, it's ordinary income, plus self employment taxes(both sides of SS/Medicaid).

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