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Updated almost 8 years ago,
Trying to figure out taxes on my first flip. Capital gains or no?
Hi, I purchased a house in Rockland Ma last May 27th 2016. It is a flip, and i'm getting ready to put it on the market. I am trying to figure out what I will owe for taxes. I'm looking to be creative and maximize my return without " crossing the line" so to speak. Based on what I read, half the articles say a flip doesn't qualify for capital gains, while the other half says " well you kind of do". Anyone have thoughts or ideas on this? Here are my numbers. Purchase price 200k cash. Repairs 70k, selling price 349-359ish. Ive read about 1031 exchange etc, not sure if I qualify for that either.
Another question I have ,who would i hire to do my taxes. I know a tax guy makes sense but I feel like the tax guy I use is not creative, and lacks savvy. Would I get a tax guy who specializes in real estate, tax lawyer? Ok thank you for your time.