All Forum Posts by: Yolanda Williams

I am new to selling property. I typically buy and hold. This year I decided to sell  a rental home I owned since 2014 rented  for about 2yrs and sold in 2017. I purchased another home next door to it in 2016 and sold that home as well. The intent on that home was to "flip" it   So the 2 would be treated differently for tax purposes,

Thank you for your help

Thank you James. Yes I did state the net profit incorrectly.About 21k. From reading some of the forums, the capital gains tax would decrease to 22%, for holding over a year and 1 month.

The property that was held as a rental initially was not intended to sell;however with the market changes, I thought selling would be wise; as my goal was to replace my employment income before leaving my job to pursue real estate full time. I also have 5 rentals as well.

What amount is considered income on house flipping for tax purposes?I purchased a home for cash-no mortgage for 25k put 25k in repairs in and sold for 79k, net 71k. How can I defer or decrease the taxation on income. Property was bought and sold in my personal name, held for over 1yr-non primary residence.

Hello I am a first time flipper. I sold 2 properties this year that were titled and sold in my personal name. One that was held as a rental for about a 3 years prior and one that was acquired and sold after a year of ownership. 

My questions is two fold: with the gain on sale of the profits from the actual purchase price and the price sold, how long do I have to do divert the gain into another property to avoid taxation? Also, I used the proceeds from the sale to purchase new properties. Two will be sold in 2018 and one will be held as a rental. For legal protection I wanted to convert these properties from my personal name into an LLC is this wise?

Is there tax consequences to converting these properties that were sold under my individual name into an LLC ? Also, I am concerned with the income tax as I also had regular personal income this year. How will this affect my taxes.