How to minimize tax on flip gain

[John Grover]

I am curious what vehicles are being used to not pay capital gains tax. Situation.. flipped house with LLC, will have six figures at closing in a couple months. Will I be relying solely on the expenses I can run through the business this year or is there a better strategy? Also who has parked cash in overfunded life insurance?

[John Thedford]

Flips are inventory and taxed as regular income. You can write off all related expenses. You cannot 1031 a flip under most circumstances. Rehab rent out  and then 1031 out after you have demonstrated it is a rental and not a flip.