First Time Flipper.. Looking for tips! (tax tips especially!)

[Alex Farah]

Hello all! I am new to the forum and have been reading/following as much as I can! I currently have a couple of rental properties and I recently just closed on a foreclosure that I have the full intent on flipping. The house cost me $48k and I have a renovation budget of $30k. To be honest, before I closed on the house I never really thought of taxes/capital gains, I was just very excited and dove in head first. From what I have read so far, I've learned that the profit I will make will be taxed at my regular income rate? I have a very good job and I am in the 35-38% tax bracket. Should that be what I expect to pay in taxes? My uncle has recommended a 1031 exchange in which he says I will have no access to the money (held in escrow) until I purchase a new property with it.

Basically I am looking for some insight, tips, whatever information maybe helpful to me and save some money on some taxes. This is my first flip, I had the intention of flipping another if this goes well and hopefully snowballing this real estate project into a full blown source of income. I appreciate the help in advance!