My husband and I just form an LLC partnership, will use S-corp for tax purpose to start flipping business. We just sold our old house (primary home) and received $40K capital gain. We want to put that $40K cash into LLC to buy our investment property. My questions are:
1.What category we should enter in Quickbook?
2.Let say we buy our fist property for $22K, fix it for $18K and sell it for $85K. Do I only pay tax on $45K we profit or $85K?
3.If we take out the original $40K from LLC, do we pay taxes on that $40K?
Thank you so much in advance