“Profit” from a flip

[Craig McLaughlin]

I’m trying to pre-calculate and figure out what I would owe taxes on. What do I consider as profit. Is it simply sale price - buy price? Do I subtract all improvements(costs) from the sale price. How would I account for ($/hr) and document my time spent on the project.

I’m looking at a deal for around $130k. Would take about $60k and 6 months to fix up. Possible future sale price of $270-280k if market doesn’t tank.

Thanks for any help.