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Updated about 9 years ago,

User Stats

45
Posts
8
Votes
Greg Rusianoff
  • Investor
  • Charleston, SC
8
Votes |
45
Posts

Capital gains on tax lien sales

Greg Rusianoff
  • Investor
  • Charleston, SC
Posted

In my state, tax lien redemption is 1 year. 

If the property redeems in 1 year, and you get your money back and interest in longer than 1 year, can I treat the interest as a Long Term Capital gain?

Also, if I get the deed to the property, and not the interest, after 1 year. If I flip that property 1 month after the expiration of the redemption period, does the gain count as long term or short term? It would make sense that it is long-term, since I committed my money 13 months before getting the payoff - the money on the flip...

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