Just did first flip - Tax questions *Seeking local CPA*

[Ben Kirchner]

I've been a buy a hold & land investor up to this point.  I just completed my first flip.  I've been doing my own taxes up to this point, as it didn't seem too complicated with my current rental portfolio.  Now that I've done my first flip, I'm seeking a real estate tax savy CPA in the Durham, Raleigh, Chapel Hill, or Carborro area.

What should I expect to be taxed on? I purchased the house and rehabbed it in cash. I'm paying interest on my HELOC. Beyond that, I've paid fees such as inspections, and utilities. My realtor will get his commission. Are all these expenses to be accounted for? Therefore purchase price - All of what's mentioned = Overall Profit

Being loose with numbers, but let's say $100k was my purchase price + all expenses, and $150k was the purchase price.  $150-100= $50,0000 to be taxed on?   Would the $50k be taxed within my income bracket?  Or additional for short term capital gains, as I only owned the property for 3 months?

Any insight on the above is appreciated.  Hoping to link up with a CPA in the North Carolina RTP area as well.
 

[Natalie Kolodij]

No you can not use proceeds from a flip to doa  1031 exchange. 

1031 exchange is for investment properties.

A flip will be ordinary income taxed at your normal tax rate + self employment tax. It's the same as operating any other business to the IRS. 

Instead of buying flour, eggs, and sugar and making and selling cakes for profit

You bought a crappy house, materials, contractor labor and are selling a nicer house for profit