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Updated almost 4 years ago,
Tax lien foreclosure and then flip the house?
Hey guys,
I have been buying tax liens for a few years, and recently three of them passed the redemption period and I started the foreclosure process to apply for the deed. Just try to make plan here, if I do get the deeds, and then sell the property, is it considered a capital gain or earned income for tax purposes? And if I hold the property for a while before selling it, or if I fix it up and then sell it, do these change what type of tax I would pay ( long term capital gain, short term capital gain, ordinary income)?
Thanks! I'd love to hear your opinions.
Sophie