All Forum Posts by: Wesley C.

I've lived in my present home for 3 years. I know that if I sell I don't pay capital gains at this point. However, if I rent it or lease option it for another year or two, am I then subject to capital gains taxes when I sell ?

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'm doing a similar thing, Asher. I'm think I'll probably try a FSBO while I am looking for a tenant as suggested. Problem I face is a high tax bracket, and a flip will be taxed at normal income. Would you ever consider living in this house you are buying? If so, you could continue to rent your present house to your friends while moving into the fixer upper and stay 2 years and you don't have to pay capital gains tax on profits when you sell. Don't overlook the tax ramifications of your options.

good stuff guys. Thanks. I'm learning a lot since I discovered this site. I'm not sure what the plan on this property is yet. Still exploring my options.

So if I sell in 3 years, let's say, I can still add the $1200 to the basis of the property provided I can show documentation of the improvements from 3 years earlier? And when you say "some of your profits will be taxed as capital gains", would you mind to elaborate on what you mean by "some"? What happens to the rest?

This should be an easy one for someone to tackle, but I'm very new at this. I close on my first investment property next month. Not sure whether to flip it or rent it due to tax considerations. I understand that if I flip I will be taxed at my income tax rate (25%), but if I hold it one year it will be taxed at capital gains rate (15%). Am I correct so far? Also, I'm estimating around $12,000 in repairs to the property whether I flip or rent. How do I go about deducting these costs? If I rent it for a year and then sell it, can I still deduct the $12,000? Any advice is apreciated. At this point I'm open to all options. Forgive me if this has been answered 100 times. Feel free to direct me eslewhere if need be.