Deductions & credits

"Purchased another home 2021 to flip" If this flip was nothing more than a one-off, then you are an investor and would have a short-term capital gain, as mentioned. However, if you wind up doing several of these flips on a somewhat regular basis, the IRS could consider the activity to be in the nature of a business (on the order of a real estate dealer), which would subject you to reporting the activity on Schedule C and potentially paying self-employment tax.