I am a newbie and trying to learn; I would really appreciate answers to these questions.
Can someone give me a good explanation on how captial gain taxes really work?
When you purchase a property to flip/resell and sell it within 1 mos to 1yr do you pay capital gain taxes on that? Are they unavoidable to flippers?
Well, this is not to insult you… but, if your asking a question such as that I’d worry about the bigger aspect of how to find the property’s, find contacts, how the finance part works… just my two cents… I’m very new to REI, but capital gains tax shouldn’t be a top priority to you.
Thank you for your reply but I found it to not be helpful. I didn’t say anything about my priorities…just wanted someone to answer my questions if they could.
However, not insulted.
It did indeed help! Thank you
I really haven’t read too much about this but, what about 1031 exchanges. Anybody familiar with these?
As an add-on to this, if the property is held for less than 1 year, you will be taxed for “short-term capital gains” and taxed at the same rate as your own normal income tax rate. If you hold the property for over 1 year, you will be taxed at the “long-term capital gains” rate, currently 15%…
1031 exchanges are somewhat complicated and I would urge you to get solid guidance on these from a CPA/tax adviser before proceeding. There are a lot of things that must be done at certain time sequences or you risk voiding the tax deferal…you can do a search on this site, it has been discussed often and there are some great links available in the threads.