Selling A Rehab
Anybody have an idea where i can look up on the internet about capital gains. I'm trying to figure out a rough estimate of what capital gains tax might be on a house I've fixed-up. This is my first rehab and it's taken about 8 months and I'm about ready to sell. Is there a general percentage that they take on the capital gain? I live in PA. Thanks for any help.
Fixup/Flip without a rental or one year holding will be taxes as ordinary income. Additionally you will have to pay self employment tax as well.
Sorry to be the bearer of not so good news.
[addsig]
if you want to re-invest your profits without getting taxed (immediately), ask your attorney/CPA about a 1031 tax deferred exchange.
Craigthecubfan,
The property that gehomes is asking about is dealer realty and is not eligible to participate in a 1031 exchange.