Solved: Re: Avoiding paying capital gains taxes on a prope...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
dixon418
New Member

Avoiding paying capital gains taxes on a property that I am flipping

Hello:

I fix properties up to sell. Hence, I experience capital gains. What is the best way to minimize the amount of capital gains taxes I have to pay?

1 Best answer

Accepted Solutions
tagteam
Level 15

Avoiding paying capital gains taxes on a property that I am flipping

If you actually flip properties, on a regular basis, as a source of income you should be asking how you avoid paying taxes on ordinary (earned) income.

 

If you fit the foregoing profile, the IRS will consider you to be a real estate dealer, your properties will be treated as inventory, any profit (or loss) will be reported on Schedule C (as a business) and subject to self-employment tax; you will not get capital gains treatment. 

 

 

View solution in original post

1 Reply
tagteam
Level 15

Avoiding paying capital gains taxes on a property that I am flipping

If you actually flip properties, on a regular basis, as a source of income you should be asking how you avoid paying taxes on ordinary (earned) income.

 

If you fit the foregoing profile, the IRS will consider you to be a real estate dealer, your properties will be treated as inventory, any profit (or loss) will be reported on Schedule C (as a business) and subject to self-employment tax; you will not get capital gains treatment. 

 

 

View solution in original post

Dynamic AdsDynamic Ads
v
Privacy Settings