Fix Up And Sell...capital Gains?
Hi there,
I got a cosmetic fixer upper. Plan on getting 10-15 profit k out of the deal (bank repo, taking about 2 weeks to get ready to sell).
Can I put the profit in a 1031 if the house wasn't a rental previously?
If not, is this going to be taxed at a higher rate if I don't hold it for longer. I'm currently unemployed so my tax bracket is non-existing (collecting unemployment)...
Any help with this would be appreciated.
Thanks,
Paola
My understanding is it is taxed as regular income. You should post this in the tax forums. I'm sure Dave will give you more than a sufficient answer. He's a walking tax code.