(or whatever other breakdown is specified in the operating agreement) Income from flips is considered ordinary income.  

I've seen flips county as ordinary income not capital gains (@15%) plus you have to pay self employment taxes on it.  

Also, the taxable portion on the sale qualifies for favorable capital gain treatment.The current maximum federal income tax rate on long-term capital gains is 20% for taxpayers in the highest ordinary income tax bracket.

But flipping income is usually considered ordinary income and not capital gains if you are in the business of flipping house. 

Okay, this is an ordinary sale.

Also, when you withdraw it is taxed as ordinary income.

But as you and many others said, this is just an ordinary buy, nothing to get excited.

Can anyone clarify... for your S-Corp's K1, do you retain your profit as ordinary income (Box 1) or distribute everything to yourself (I believe Box 12)?

On a personal enjoyment level, I find it much better than BR. It’s

@David M.Yes depreciation recaptured gain on Section 1250 is limited to depreciation above the MCRS straight line method and is taxed as ordinary income.