The stereotypical wary Brit animal expert is fascinated by the creatures as they poke, prod and throw themselves into the fence and wall.

You also may be transferring income that is passive rental income to active ordinary income that may be subject to self-employment tax.

Hi @Keeya WangJones, well this is my little story 2004( I was to young had just gotten my real estate license but what I remember, I did 2 sales only that year, but rates did go up a little and that's why my 3rd property did go threw ) 2008( I was young Associate at the Investment firm of my dreams, so my job was to analyze trades, purchase of large multifamily complexes, what I notice that the uncertainty of the election does drive into doing out of comfort moves, but 2008 election was during a time of crisis in the real estate world, but what I gather of the residential market that year was if you had money you bought property because it will go up couldn't go any higher and election did affect at some point the election ) 2012( I was more establish in the firm and was head investment analyst learned a lot since last election, and this was a different, that drove inventory low, nobody was selling investor were waiting with check and pen for another dip in the recovery economy but didn't happen just affected the options out there and the desire of people to sell common ordinary home buyer ) 2016( What my firm and I been noticing this election is a chain reaction, large hedge fund corporations are not making the move to invest there own capital, midsize and family offices are buying up safe investments and rentals with lease signed tenants, why uncertainty, and the average dude is buying like crazy, what he can get his hands one to make quick cash, will this drive or economy to a collapse again, some say yes some say no, you be the judge, but what everybody agrees that there is more money out there now so more money to loose, if I was you If there is a property that you love buy it park that money, somewhere cause whatever happens in election your money is safer in a home then in the bank, plus your home creates equity, just buy in a good area here in San Diego, we have the coastal California economy where you buy it ill go up in price, so just go out there and find the right home, I know its hard cause options are so few in the area now.  

It is also good for landlords to be flexible when faced with out of the ordinary circumstances and letting a person terminate a lease early without penalty is certainly an option.

@John Woodrich   @Nicholas AiolaForm 6252 instructions for Line 12(Ordinary income recapture) only includes depreciation from line 31 of Form 4797 which would be $0 in the case of MACRS real property.

That's funny because I and other Contractors always thought the SOW was to keep the customer accountable :-)  They were always the problem in my many years of experience......Not kidding at all, that is my experience too, however, being on the client side many times in the past, the SOW did help keep the contractor in line more as I was not the ordinary client being a RE investor/developer prior to being a contractor.Great post and flippers AND buy and holders should take note of this (in fact, so should wholesalers!) 

I've been using them for more than 40 years, never had a problem with one out of the ordinary and since you don't require much heat in Texas I think they are a perfect fit.

Nothing extra ordinary.

You'll pay ordinary income taxes at your marginal rate.  

It makes no difference if flipping is your regular job or not, anybody who buys a home with the intent to fix and resale it is subject to income tax at their ordinary rate, it is never taxed as capital gains.