You'll pay ordinary income tax along with SS/Med tax on the profits.

If owned less than a year, than at ordinary income rates.  

(Depending on if you were day trading or buy and hold strategy that would determine if you pay capital gains tax or ordinary income tax)Let me get to my point....

This is often touted as a "tax benefit" and naive buyers are told you can deduct this against ordinary income.  

Partnerships, from what I have read, seem to be used more along the lines of smallers business that do not incur debt in the ordinary course of business. 

It would also have about $35,000 equity that I could liquidate to apply towards another property, debt paydown etc.I want to extend my ownership to at least 1 year and 1 day to qualify for long term capital gains vs ordinary income.  

If you do not have a partnership agreement and the assignment check was made out to you, you will have to 1099 your brother for his portion or you could end up paying the taxes on it.Your assignment fee will be taxed as ordinary income and could be subject to SE tax.It's hard to provide specific advice without knowing your whole financial situation, but I can recommend that you save some of the proceeds in a separate account for taxes.Let me know if I can be of any further assistance.Good luck on your journey and I hope this helps.Ed

Originally posted by @Stephen Chittenden:You can use some strategies (such as 1031 exchanges) to defer taxation, but otherwise the profit on each flip will be subject to taxes.You can't do a 1031 on a flip property...In general, all flip income will be subject to ordinary income taxes at your marginal rate, plus self-employment taxes. 

and you may not need one up front as well if you know a little about what your doing.30% on small loans is not out of the ordinary I do those all the time. and much higher actually the smaller the loans the higher the return.. those borrowing the money know this.. what you need to do is check for usury.. my deals are equity deals so they are not loans.. so usury is not an issue for me.. that's how I can make 50 to 100% apr routinely. but I have 40 years at it..

If anything out of the ordinary should come up expense wise sounds like there would be no money to cover it unless the owners used their personal money to pay for it.