The Internal Revenue Service has finally issued guidance to help taxpayers understand when a vacation home or a second home may qualify for 1031 exchange treatment.Revenue Procedure 2008-16 The IRS issued Revenue Procedure 2008-16 http://www.exeter1031.com/1031_exchange_revenue_procedure_2008_16.aspx to help define when vacation property or second homes might be qualified use property and therefore qualify for tax-deferred exchange treatment under Section 1031 of the Internal Revenue Code.

This tax is designed to protect tax-paying businesses from unfair competition. 

Bad News.....now I'm facing some pretty steep tax payments as these are considered regular income.I'm wondering what seasoned pros are doing to shelter profits made from fix & flips? 

All the "backdoor Roth IRA" articles online always fail to mention the prorata rule, which causes many taxpayers without tax advisors to end up in a bind or incorrectly DIY their returns.

A seller who finances needs to get a substantial down payment and ensure that the property is adequately insured by the buyer and that initial property taxes are pre paid and a tax payment plan is established."

Thanks, I worked for a fortune 500 company in the finance Dept and they always told me, when I was planning a deal to never do an installment sale, because postponing the tax payment was against the rules. however after a quick search of the IRS web site I see clearly you only pay taxes on the profits you receive in the year that you receive them.

You mention an LLC so Ill assume that this property is owned by a multi member LLC that files a tax return and gives you and your partner K1s  That means that the LLC is the tax payer for the property. 

@Eamonn McElroy is correct in that the costs to look for new properties is not currently expensed and instead would be added to the cost basis of the new property you purchase.There were taxpayers who took your position where the IRS adjusted their return that is documented in various court cases.

As a cert holder I don't "own" the parcel but I assume I could purchase the redemption rights assuming I could find the taxpayer.

Does anybody else make quarterly tax payments?