Help with tax liability of first successful flip!!

[Chad McIver]

I just received a accepted contract on my first flip, in St. Louis City, MO. Happy with the way it turned out and the profits. Still have to get through inspections.

But List price $99,900, sold for $98,000, DOM 70. Total expenses including staging, real estate commissions, concessions is $78,500, for a taxable profit of $19.500!

I plan on moving to another flip, and do not want to get stuck with all the capital gains. Suggestions on strategies to use moving forward?

Thanks for your time!

[Wayne Brooks]

Chad, it's not capital gains, it's ordinary income, plus self employment taxes(both sides of SS/Medicaid).