best tax saving strategies for flipping

[Fabiola Patron]

I am wondering if anyone has any advice on tax savings on income made from flipping. Should I buy investment property out of state, re invest in another flip? 

[Eamonn McElroy]

General mitigation strategies for value-add flips are conducting business through an S Corp and starting a self-employed retirement account.  An S Corp probably won't make sense in year 1 unless you expect to do a lot of business.  There are cost-benefits to running an S Corp.

You cannot defer taxes from a flip by "reinvesting" in another flip just like a restaurant can't defer taxes from the sale of a meal by "reinvesting" in another meal.  It's an operating business.  1031 doesn't apply to inventory or property held for sale.

For specific advice you should on-board a tax professional who can advise you as an external member of your team.