I recently completed my first flip. We purchased the property August 10th and close today (November 24th), creating a holding period of 3 months. We profited around $140 on this flip after closing costs. The selling price of the property was $375 (not sure if this information is useful for my question).
My question, how can I reduce the short term capital gains taxes? I have already filed a 1033 for our next project. What all can be included in the 1033, the purchase price of the property? Or can we add the rehab costs as well?
I am trying to come up with a solution so that I am not paying almost half of our return taxes. From the research that I have done I have found re-investing it may be the only solution! What is the best way to re-invest this money so that we have a higher rate or return?
