Using profits from flip to purchase a primary residence

[James Alt]

I have a property that I'm flipping and am hoping to use the proceeds of the sale towards a down payment on a primary residence. Do I avoid taxes on the money I make from the flip by doing this? 

I understand that I can't do anything related to a 1031 exchange being it's a flip and I'll only be owning the property for a few months.

Thank you!

[Michael Plaks]

It can never qualify for a 1031 exchange if you're buying a primary residence. It also does not necessarily qualify for long-term capital gain treatment even after 12 months. And, if it does, intentionally holding a property for longer than necessary can backfire big time, regardless of taxes.

And before you start planning how to deal with taxes on this flip, make sure that this flip will actually generate taxable profit after you take every expense into consideration.