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Updated over 2 years ago on . Most recent reply
Flip & Taxes - Capital Gains?
So I did my first flip. Worked out great. Bought it for $225k. Put another $125k in it. Sold for $450k. 6 Month time frame. Now... it's treated as a short term capital gain..... what can I offset it by? If I bought a truck through the LLC that the property was under, is it tax deductible? OR is the transaction treated singularly?
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Wayne Brooks
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Wayne Brooks#1 Foreclosures Contributor
#1 Foreclosures Contributor
- Real Estate Professional
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@Joe Farruggio Flipping income is not short term cap gain....it is taxed as ordinary income, including the 15.3% med/ss.
The section 179 depreciation for vehicles/equipment has it’s own requirements, including the % of time the vehicle is used for business.