Capital Gain Sales Tax Question

[Stephon Rhea]

Just recently sold my first flip. What is the current rule on being taxed for capital gain and how can I protect myself to avoid being taxed at a high rate? I've heard that if I buy another investment property within 90 days but I also heard if I buy another within a year. All information is appreciated. I am in Houston Texas

[Bill B.]

And if you’ve already sold it. (You’ve already closed and been paid.) you have zero days to buy a replacement property to save taxes. You can’t have control over the money for a 1031 exchange.

You’ll probably want a tax pro involved in filing your returns because you might be subject to self employment tax and maybe even that extra 3.5% if it was a big enough profit. I also don’t know if you’d be required to file a quarterly statement and prepay some of the taxes owed.