What are the rules about Capital Gain and flipping houses?
Hi. I'm flipping a home and just heard that in 2010 the rules for capital gain were changed stating that we HAD to pay on any home we havne't lived in for at least 2 years. Is this correct?
We are planning on reinvesting this money within a year!
- OthnielLv 61 dekade yang laluJawaban Favorit
If you make short term capital gains then you would have to pay at your regular tax rate. If you held the property more than a year you would pay long term capital gains. If you do multiple deals in a year it is considered a business and you would file a Schedule C and pay self employment tax. If you live in the house as your principle home then the rules are different but that is at least a two year time frame.
You may need more specific tax advice than can be provided in this forum.
- Ed AtunLv 71 dekade yang lalu
Yes, this is taxed like any short-term (less than 1 year) investment. Same as selling a stock after owning it less than one year.