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Updated about 4 years ago,

User Stats

156
Posts
55
Votes
Jessica Parker
  • Realtor
  • Navarre, FL
55
Votes |
156
Posts

Tax strategy advice for flipping/wholesaling

Jessica Parker
  • Realtor
  • Navarre, FL
Posted

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? 

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