How to avoid paying capital gains tax for flipping?

[Jasraj Singh]

I wanted to know that how can I avoid paying capital gains tax if I want to sell the property. I know we do a 1031 tax defer exchange but thats only for investment properties. But how can i avoid paying capital gains tax if i want to sell the property and need cash?

[Wayne Brooks]

Your title mentioned a “flip”.  Not only does a true flip, bought just for purpose of repairing and selling for a profit, does not qualify for cap gains either....profits are taxed as ordinary income plus ss/med taxes of 15.3%.