Income Taxes as a 1 time flipper - Posted by Greg

import · December 20, 2004, 9:25am

Posted by John K Haslach, CPA, MST on December 20, 2004 at 13:12:45:

Personally, I would report it as short term capital gain.

import · December 20, 2004, 9:25am

Posted by Greg on December 20, 2004 at 10:25:09:

I flipped a property in 2004. It was a short-term rehab that about $30K was made. My question:

Because this is a one time occurance and I am not actively involved in any real estate activities (other than this one occurance), is this subject only to Short-Term Cap Gain Tax or is this a schedule C item subject to ordinary income tax and Self-employment tax?

Thanks in advance for the guidance.

import · December 20, 2004, 3:56pm

Re: Income Taxes as a 1 time flipper - Posted by Natalie Smith

Posted by Natalie Smith on December 20, 2004 at 16:56:32:

I thought you might find the attached info from Bill Bronchick helpful. Get a good CPA and see what he or she says.

http://www.creonline.com/real-estate-law/Bronchick/legal-033.html

http://www.creonline.com/real-estate-law/Bronchick/legal-015.html

import · December 20, 2004, 1:07pm

Re: Income Taxes as a 1 time flipper - Posted by David Krulac

Posted by David Krulac on December 20, 2004 at 14:07:29:

short term capital gains is taxed at ordinary rates up to 36%. ordinary earned income and short term capital gains are essentially the same.

only when you get to more than 1 year and long term capital gains do you get the favoprable 15% tax rate or lower.

But on the bright side only doing one deal a year and you probably aren’t a dealer, notice I only said probably.