capital gains from selling a house - Posted by James

import · August 26, 2009, 7:21pm

Posted by Dave T on August 26, 2009 at 20:08:49:

Yes, you are missing something. Anytime you flip property, your profit is ordinary income - not a capital gain. You can not defer the taxes on the sale of your rehab/flip by investing the proceeds into your next property.

import · August 26, 2009, 7:21pm

Posted by James on August 26, 2009 at 19:21:11:

I have a property here in maryland that I bought to rehab and sell. Once I sell it I understand the profits are subject to capital gains. However , couldnt I defer the tax by putting it into my next house . Once I rehab that one just refi with the bank and cash out that way? Would this avoid the taxes? I know I would pay 1 point or 2 but thats better then the gains tax. If I was keeping the next one to rent and not sell this seems like the best option. Am I missing something?

Thanks
James