How To Re-sell (flip) My Lot And Not Get Taxed To Death?
Hello, Thanks for reading my post. I bought a lot and a friend now wants to go in with me on a larger lot. What is the best way to flip the lot. How long do I need to hold on to it before I can use capitol gaines. I think two guys on either side want it to expand their lots? Any help will be appreciated. Thanks
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The general rule is investment property held longer than one year qualifies for long term capital gains tax treatment and the maximum long term capital gains rate of 15%. With a shorter holding period, profit on the sale of your investment property will be taxed at your marginal tax rate -- the same rate as your ordinary income.
Remember, only your profit is taxed, not your entire sale price.
Davet,
Thanks for the reply. Beautiful place you live in.
Also keep in mind from an investor standpoint that a fast nickel is better than a slow dime. If you can buy one property in a year and you save 10% or so but you could have bought and sold 10, are you really saving money?
My two cents...
A bird in the hand is worth two in the bush...
Now, I guess, I need to figure out where my break even point is (sorry what is the correct term) so I will know how much to sell it for.
Thanks