Flipping homes through an S-corp??

[Jason Ballesteros]

Please bear with me as I am new to the investment and tax implications of flipping homes for profit in less than a years time. My father and I work together in a flooring contracting company. My father has the company under his Corporate name as a DBA. We are trying to understand the capital gains tax implications at the end sale because to start, we do not wish to hold the properties for a period of a year or longer. I understand that we will still have to pay the capital gains tax at a long term rate if we hold for longer than a year.
My question I guess is, Can we not pay ourselves throughout the job so that $$ goes to the basis? I assumed that by doing it this way we will not see as large of a profit on the end sale, hence the capital gains tax would not be as large. We will still be paying income taxes on our profits because they will be distributed to us throughout the job as a salary.
We are capable of doing most of the work to a home ourselves and I figured that would be to our advantage because of the reasoning behind taking a salary out of the project while it is going on. We still would like to keep some funds in the business to grow the business as well.
I have also been reading alot of posts that state the profits on the end sale can also be paid out as dividends to corporate officers or shareholders at the end of the year. Is this correct? By doing this do you avoid large capital gains hits because you are taking the profits out as income? Can employees(like myself and brothers) be paid dividends out of the profits as well. My brothers and I are employees of the DBA.
I have read quite a bit on 1031 exchanges as well and am still a little uncertain if it will fit into our business plan to start because of the inability to hold the properties for a year or more until we build a little more capital.
We just want to maximize profits. I do not feel that the IRS can take our profits as capital gains if we are paying ourselves salaries throughout the construction. We are doing the work and that should be considered our income for work performed.
Any help on this would be greatly appreciated. I think this idea is legitimate but some reassurance or discouragement would help me understand the correct path to take.