Capitol Gaines tax: Does it eat away your net profit margin?

[Nadine Massarelli]

Our IRA adviser is trying to convince us that capital gain taxes will eat up our profits and want us to keep our funds in the IRA or transfer them to a 401K instead of closing these accounts and investing them in our business. How do Capitol Gain taxes work with fix and flips, or properties held by an LLC that are sold prior to 1 years of ownership?

[Wayne Brooks]

capital gains taxes don't apply to flips.  Taxed at ordinary income tax rates, plus SS/MED taxes.