Saving Taxes Renovating?
If someone was to buy a building, then take a year to rehab it and fix it up, would it then be eligible for the 15% capital gains...or would it still be considered "flipping"? Also, is it legal to take out a home equity loan, write off the interest and use the loan money to help purchase and fix a property for resale?
Quote:If someone was to buy a building, then take a year to rehab it and fix it up, would it then be eligible for the 15% capital gains...or would it still be considered "flipping"? Flip property is dealer realty, and the profits on the sale are taxed at your ordinary income tax rates -- regardless of your holding period.
Quote:Also, is it legal to take out a home equity loan, write off the interest and use the loan money to help purchase and fix a property for resale?Yes, perfectly legal.