Help a Flipping Newbie

[Alea Burke]

I am purchasing my first flip home. My plan is to reinvest the money into my next project and I will be holding the properties for less than a year. What sort of taxes should I expect to pay and what are the best ways to minimize them other than holding onto it for a year? 

[Bob Norton]

@Alea Burke You have to be careful if you don't want your flipping venture to be considered a developer.  It sounds like that is the path that you are on.  As a developer, your properties are considered inventory and you cannot have long-term capital gains, or defer taxes with installment sales or 1031 exchanges.  You will pay ordinary income taxes on the profits and also self-employment taxes. As @Joe Homs suggested you could consider setting up this venture in an S-Corp so that you can manage your self-employment taxes.