Posted by Bronchick on July 06, 2004 at 12:02:10:
A “flip” is not a capital investment, so it is not a capital gain, it is an ORDINARY short. For this reason, corporations are generally recommended for flips vs. LLC. The choice of S v. C corporation will depend on a variety of factors, which you should review with a local tax professional.
LLC and Flipping Property - Posted by Douglas Scott
Posted by Douglas Scott on July 02, 2004 at 08:33:07:
I have recently had an offer accepted on a house I plan to rehab and resell. Could someone please provide some advice on maximizing my profit here. It’s my first investment property. I understand that with a flip, I cannot perform a 1031 exchange. Am I doomed to pay capital gains taxes on my profits? Is the capital gains tax different for real estate than for other investments? I’ve heard 15% and 20.
Also, I have not formed my LLC yet. If I purchase this house in my own name, are there any other / different tax implications?