Re: Avoiding paying capital gains taxes on a prope...
Level 15

Business & farm

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. 



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