Tax Strategies for Flipping

[Jackson Tate]

I will be selling a flip in a few months and will be very close to the 1 year hold mark on the property.

Other than dumping more money into the property in order to increase the amount of write-offs, does anyone have any tips or strategies they have used to soften the tax hit on their flips?

[Linda Weygant]

I'm not sure why you're wrapped around the axle about the 1 year mark.  That makes no difference on a flip.  (If you're thinking flipping income is Capital Gains, it's not.  Flipping is Ordinary Income).

Many people find an S-Corp valuable for tax savings for flipping, however you would have needed to set that up at the beginning of this transaction, not at the end, so this is not a strategy that will work for you this time around.

My best advice would be to get with a real estate savvy CPA and explain your experience, your goals and what you've got going on in the rest of your life, because all of that will matter in the advice you get for your future projects.  

For this project - sounds like the time to think about this was a year ago....