Need Advice
Hi
I wanted to know what I should expect to pay on flips. For example I am a W2 wage earner at a day job and I have bought a property for 85K, I spent 20K on rehab and will now sell it for 130K.
Would it behoove me to put the property in my corporation name, (I paid cash for the house and rehab) and sell it from my corporation as well?
After the sell I have Realtor fees of 7800. as well.
Any help is greatly appreciated.
Dave
that depends on what your intention was.... If you had planned on renting the house out however someone twisted your arm to sell it to them than youre at the capital gains rate 15.3. If it was your intention to flip from the start than your at your normal income tax rate.
Keep in mind that you probably will have a ton of business expenses to write off as well.
Every time you took a trip to look at property in a vacation town is a write off... All of the education you paid for is a write off.
I would google a guy by the name of Glenn Wilson in Santa Barbara California. He is an expert in Investor Tax...[ Edited by MichaelQuarles on Date 03/09/2008 ]
Thanks Chris.
[ Edited by davese on Date 03/17/2008 ]