Trying to figure out taxes on my first flip. Capital gains or no?

[Robert Anderson]

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. 

[Natalie Kolodij]

Well for starters- your tax professional need not have male genitalia. 

If you're flipping as business it's ordinary income. Not capital gains. Taxed at your normal bracket. 

1031 is more for investment properties but you may be able to get creative if it makes sense to utilize one 90k is a decent amount of profit. You could talk with @Dave Foster there may be a way to utilize it as a short term rental type of thing first- you have owned it quite a while. 

But ya- you should absolutely find a tax professional (preferably one licensed with letters on their names) who specializes in real estate.