Posted by Chuck on April 27, 2005 at 14:11:19:
Just to clarify…
Are you saying “if I flip the property at a double escrow” (as opposed to holding it for some defined period of time (i/e - a year)… that cap gains are not an issue, it’s considered “ordinary income”?
Straight Options, Cap Gains? - Posted by Chuck
Posted by Chuck on April 23, 2005 at 14:03:04:
Just wondering if there is a cap gains issue in doing straight options… when either selling the option at a profit… or the property in a double-escrow flip.
Re: Straight Options, Cap Gains? - Posted by Mike W - LV
Posted by Mike W - LV on April 26, 2005 at 19:33:59:
Chuck,
If selling the option, then its ordinary income. If the option is help over 1 year, then long-term capital gains.
If selling the property, same time issues equal same results. Be careful of dealer status if you do ‘too many’ in your own name.
Try this. Why not sell just enough of the option to recapture your cost and share the upside for long term cap gains with no additional work?
Hope this helps,
Michael - LV
Re: Straight Options, Cap Gains? - Posted by Mike W - LV
Posted by Mike W - LV on April 26, 2005 at 19:32:15:
Chuck,
If selling the option, then its ordinary income. If the option is help over 1 year, then long-term capital gains.
If selling the property, same time issues equal same results. Be careful of dealer status if you do ‘too many’ in your own name.
Hope this helps,
Michael - LV