I am from CA and wanting to fix and flip a couple of houses and wanted some ideas on the best way to hold the property. Land contract?? Also, I do want to flip a few homes and eventually buy and hold using lease option as an exit strategy, but I do not want to be considered a dealer for tax purposes. ANy ideas on how many homes to flip to be safe and not get taxed at the higher bracket??
I believe (correct me if i’m wrong guys) that any house bought and sold within 1 year of buying it will be considered INCOME and will be taxed accordingly to your tax bracket.
If you hold it for a year and a day before selling then its Capital Gains 15% taxed.
I’m interested in the answer to this as well.
DP read this article and then look at the tax calculator to give you a good idea
I do believe i was right on my last thread but the article gives you a better understanding.