Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated about 4 years ago,
Tax strategy advice for flipping/wholesaling
Hi fellow BP'ers! So My husband and I are at the very beginning stages of getting our investing career going! We just created an LLC to flip and wholesale out of. We don't need any of the money we will be making from wholesaling or flipping as our current business provides more than enough income to live off of. So we plan on reinvesting everything!
If we re-invest all profits that we make from flipping and wholesaling, will we have zero tax liability for that portion of income at the end of the year?
We have a plan on moving to the South here in the next couple years...so would we then be able to take whatever our capital is up to at that point and put it all into buying properties in cash or use the money as down-payments on multiple properties and completely avoid any tax? We would then plan on Refinancing properties to pull our money back out after we rehab them. I'm just wondering, is this a good tax strategy? Will we in essence be able to avoid all taxes on that income doing this?