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Updated over 7 years ago on . Most recent reply

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4
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1
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Tom Reay
  • Real Estate Investor
  • Pittsburgh, PA
1
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4
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Short term capital gain on flips

Tom Reay
  • Real Estate Investor
  • Pittsburgh, PA
Posted

Do flippers get hit with short term capital gains since they buy and sell within one year? How would this be avoided?

Most Popular Reply

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7,658
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Roy N.
  • Rental Property Investor
  • Fredericton, New Brunswick
4,300
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7,658
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Roy N.
  • Rental Property Investor
  • Fredericton, New Brunswick
ModeratorReplied

No, the proceeds earned from flipping is income, not capital gains.

The properties you acquire as a flipper are your inventory, they are not capital assets used to earn income.

  • Roy N.
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