Flipping

[Tami R.]

I was listening to the podcast today - love the fact about where David was going into a property 90-120 days and flipping it.  Purchasing it for 75k putting 25 or 27k into and selling for 125k.  My question is this... wouldn't capital gains be in effect for short term and take a lot of the profit?

I am more of a buy and hold buyer but we are interested in flipping as we own a const. co in the des moines market.  We are selling a house that we owned for over a year in iowa and my tax accountant said I would have to pay Iowa's 9% tax and then 24% long term capital gains.