Capital Gain

[Anita Effendi]

Hello there,

Anyone know what's the general capital gain for fix and flip (hold less than a year)? I'm in CA. 

Ex: IF purchase price $200K, sell for $300K, rehab $30K --

capital gain is about 30% from $70K (purchase price + rehab minus selling price) OR

30% from $100K (purchase price - selling price?).

I'm trying to partner up on my next deal (I get loan, partner do the labor) so I would like to make sure that we get this out of the way. 

Thanks a bunch!!!