Taxes Of Flipping A Single Family Home

[Justin Morris]

Looking for a CPA or accountants advice about the tax implications of fixing and flipping a single family home. When I resell the home do I just pay standard income tax or do I pay capital gains tax as well? Can I deducted the purchase price of the home, plus all the rehab costs from the money I would be taxed on? I am trying to understand in detail what percentage of the profit I expect to loose in taxes from flipping a property.

[Will Barnard]

Justin, you ask if the insurance costs a lot. The answer is relative but my opinion is no. Same goes for the entity. As Steven Hamilton II reiterated for me, and made additinal valid points, not getting an entity MAY cost you much more than the cost of one, same goes for insurance. Not having it MAY cost you much more than the cost of it.

Therefore, do them both. If you run a business, then run a business, don't do it half azzed!