Tax Implications - Using Flip Profits to pay down HELOC

[Annette Wanamaker]

Hello, BP land!

I've just purchased my first long term rental and am looking at next steps. I used a HELOC on my primary home to finance the down payment for this first property. I am considering a fix-n-flip next to use the profits from that flip property to pay down the HELOC balance. What are the tax implications in this strategy? Will I be paying capital gains if I'm not putting that profit directly into another RE investment? Thank you for your expertise and willingness to share!