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Updated about 3 years ago on . Most recent reply

Is note flipping taxed the same as house flipping?
I was thinking about flipping a seller carry back note. I am new to the notes and real estate business and wanted to know how that would work tax wise. I understand that if I were to flip a house I would be subjected to heavy taxes. If I were to flip a note would I still be subjected to heavy taxes?
Most Popular Reply

@Anthony Howell
Interest on notes is ordinary income. Selling a note no matter how long you owned it is still ordinary income. This according to the two CPA’s I use.
Please consult your tax advisor.
If you flip one note and can do it in a sdira or 401k that is better but if you flip many notes then it could be construed as being active and subject to tax and penalties. Again speak to a tax advisor.
- Chris Seveney

7e investments
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