However, you can reduce tax liability by:Converting the flip into a rental for at least a year, allowing for depreciation and potential 1031 exchange benefits when selling.Offsetting gains with deductions, such as accelerating business expenses or using cost segregation for rentals.Using an S-Corp for future flips to lower self-employment taxes while keeping rentals in an LLC for liability protection.Deferring deductions to 2025 if your 2024 taxable income is high.While a 1031 exchange isn’t an option for flips, strategic tax planning can help minimize taxes.This post does not create a CPA-Client relationship.

Working in a busy property management company, I'm often asked for advice on camera and alarm systems, and in rougher neighborhoods sometimes it can be a toss-up on whether to keep a property boarded-up between showings. 

It has a Walmart, Lowe’s, Home Depot, Applebees, and a 99 Restaurant which is a New England chain as well as tons of other businesses and restaurants.

They will still do the occasional flip, but mostly when a deal presents itself AND they may be between new construction starts so need to keep their teams busy.

@Dalton Summers My ex-business partner owns 40 units and still rents a house...

It makes lead management way more efficient since they get to focus on people who actually want to do business. 

Doing business with family can put a lot of stress on the relationship.

Would that lower our tax liability from other income we receive or no because this is purely RE and not an operating business?

They have a list of vendors that want to keep them happy because of all the business they do.

I’m new to the rental business.