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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.
‎September 21, 2021
8:15 AM