Loopholes for cap gains on a flip?

[Anthony Porembski]

Hello people! I was wondering if there are any ways to reduce your hit on capital gains from the sale of a flip.

Can you roll profits into a down payment on a new SFR property without getting hit or are there any other clever ways? Not that I'm opposed to paying good old Uncle Sam, I'm just curious. Thank you 🙏🏻 🙏🏻🙏🏻

[Ashish Acharya]

Originally posted by @Anthony Porembski:

Hello people! I was wondering if there are any ways to reduce your hit on capital gains from the sale of a flip.

Can you roll profits into a down payment on a new SFR property without getting hit or are there any other clever ways? Not that I'm opposed to paying good old Uncle Sam, I'm just curious. Thank you 🙏🏻 🙏🏻🙏🏻

 No matter how you use the profit from the flip (downpayment, buy another investment or any other business spending), you still going to have to pay taxes on the profit that is already been earned. 

As lance mentioned above, there are few ways if you funnel your money to retirement plans, you can save up to almost 50-60k from tax. But the money will stay in your 401k other qualified plans, and cannot be used for other deal.  

Also, the flip profit is taxed as ordinary income with subject to selfemployment taxes, not as cap gain.