My tax basis for 2019 is $17,469 so I subtract that from my $20,000 profit to leave $2,531 of taxable (ordinary) income. 

Any ordinary and necessary expenses. 

CheersSachinHi sachin, Flipping houses qualifies as ordinary income- not capital gains.

Otherwise, taxed as short-term cap gain subject to ordinary income tax rate.4.

Brit F.

I have only used that IRA to invest in private notes and hard money lending because those types of investments produce "interest" income which adds to my ordinary income tax bracket levels.

Flips are earned ordinary income. 

Depending on income levels, this passive loss may or may not be deductible against your ordinary income. 

If the suspended losses are in excess of the total gain, the remaining suspended losses will then offset ordinary income.3.

It is one year of say 50% value depreciation vs. all of the gain being taxed as ordinary income.