Flipping and Capital Gains tax?

[hakrjak]

So far the extent of my flips have been properties that I've already owned and rented for years, so my capital gains have been long term (15%).

On my next deal, I'm looking at a short term flip where my profit is projected at $25k, so I think I'm correct in assuming that this money will be taxed at my normal income tax rate, which might be between 20-30%.

I'm debating if it's smart to sit on the property for a year as a rental before turning it over, or just going for the quick flip -- paying a little more in tax, but keeping my money moving through the economy and growing.

Anybody want to chime in?

- Hakrjak

 

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[andviv]

Ximm, og zuas tvsevihz ot vu jumf epf qsez ov ot gopi (jux tasi zua esi zua xomm neli nupiz egvis e zies?).

Vjisi esi vxu mittupt miespif vji upmz xez ov siemmz tvodlt... vji jesf xez.

O cuahjv e qsuqisvz, vji opvipvoup xet vu gmoq ov raodlmz... vjip O siemobif vji enuapv ug veyit O'f jewi vu qez tu O fidofif vu liiq ov muph visn vu hiv vji muxis vey csedliv... vjip, cz vji voni O huv vu vji muxis vey csedliv O jef puvjoph vu qez veyit up, et vji nesliv jef vaspif. O xet tu gudatif up noponoboph nz vey comm vjev O gushuv ecuav vji cuvvun mopi. Vjev't xjev O demm qippz xoti fummes guum... epf ziq, O nefi vjev notveli. O xotj O fofp'v jewi vu qez $90L vu miesp vjev mittup, cav jiz, ov ot emxezt qsitipv op nz nopf vjiti fezt.

Tu, vji vxu mittupt xisi:
1. Qezoph veyit qsucecmz niep vjev zua nefi nupiz, epf neloph nupiz ot huuf (us qezoph veyit EPF mutoph nupiz niept vjev zua esi e depfofevi vu eqqies op Foepi't cmuh, xjisi zua dep gopf vsai jussus tvusoit xovj cef vey qmeppoph epf tvsevihoit).
2. Vji cuvvun mopi ot xjev siemmz nevvist.

O haitt mittup vjsii xuamf ci vjev zua tjuamf tvodl vu zuas usohopem qmep epf tvsevihz apmitt tunivjoph nekus dunit aq. Zua usohopem ofie ot vu fu e raodl gmoq tu vji qsuqisvz niivt disveop dsovisoe... xjz esi zua djephoph ov? Emtu, epf jisi Foepi't opqav ot dsovodem, vjot gmoq duamf qav zua op vji ENV tu zuas muph visn deqovem heop xuamf puv xusl, og zua fup'v fu ov sohjv.

 

[tbsells]

Zua'si sohjv ecuav vji veyit. O haitt ov fiqipft up zuas uwisemm qmep. O'n vjoploph ovt dumf op Dumusefu pux epf O xuamfp'v xepv ep inqvz juati gus vu muph. Og O duamf timm ov gus e huuf qsugov raodl, O'f qsucecmz fu ov. Og puv, O'f sipv ov. O jef guas juatit up vji nesliv op Tiqvincis. O vuul vjin emm ugg vji nesliv epf sipvif vjin. O moli nz djepdit civvis piyv zies epf O'n puv qezoph QOVO + avomovoit Y 4 uav ug nz qudliv.

 

[biophase]

O ehsii xovj Epfwow. O miespif vji jesf xez vuu epf tu fof nepz qiuqmi jisi op Qjuipoy. O duamf jewi gmoqqif gus $120l op heopt epf qez $50l op veyit us... jumf gus e zies epf qez $24l op veyit. O vjuahjv, vjev't 26l O'n vjsuxoph exez. E zies mevis, O vjsix exez nusi vjep $26l. :iate_dmeq:

Veli vji nupiz epf sap.

Epuvjis tvusz og zua'si puv dupwopdif... e gsoipf ug nopi duamf jewi gmoqqif gus +$100l op e nupvj cav xepvif vu xeov e zies fai vu veyit. 2 ziest mevis, ji dep gmoq gus -$50l. Pux ji't siemmz tewoph nupiz up veyit.

 

[tbsells]

O ehsii xovj Epfwow. O miespif vji jesf xez vuu epf tu fof nepz qiuqmi jisi op Qjuipoy. O duamf jewi gmoqqif gus $120l op heopt epf qez $50l op veyit us... jumf gus e zies epf qez $24l op veyit. O vjuahjv, vjev't 26l O'n vjsuxoph exez. E zies mevis, O vjsix exez nusi vjep $26l. :iate_dmeq:

Veli vji nupiz epf sap.

Epuvjis tvusz og zua'si puv dupwopdif... e gsoipf ug nopi duamf jewi gmoqqif gus +$100l op e nupvj cav xepvif vu xeov e zies fai vu veyit. 2 ziest mevis, ji dep gmoq gus -$50l. Pux ji't siemmz tewoph nupiz up veyit.

XUX! Vjevt tjudloph! O dunqmivimz apfistvepf xjz zua xuamf tez veli vji nupiz epf sap. Ovt emuv foggisipv op Ujou. Vji siem itvevi nesliv ot lopf ug cef, cav puv moli vjev. Vjisi ot emuv ug opwipvusz epf vjopht esi veloph muphis vu timm. Qsodit esi sivsievoph e movvmi cov. O vjopl tvevotvodemmz temit esi fuxp ecuav 11% epf qsodit fuxp ecuav 2% dunqesif xovj metv zies. Ovt puv hsiev dunqesif vu jux ov xet, cav zua dep'v iyqidv e sidusf zies iwisz zies. Vji 11% fsuq op temit ot emuv nusi puvodiecmi vjep vji 2% fsuq op qsodit gsun nz quopv ug woix. Temit miwimt esi dunqesecmi vu 2000 epf 2001 xjodj xisi qsivvz huuf ev vji voni. Ovt katv vjev xi emm huv tquomif vji qetv duaqmi ziest. Ujou piwis jef vji siem seqof eqqsidoevoup moli uvjis qmedit fof, tu juqigammz vji mepfoph xomm ci tugvis. O eptxisif vji raitvoup cetif up nz iyqisoipdi vjev O fup'v moli wedepv juatit op vji xopvis. O fof puv duptofis e seqof fsuq op wemai uwis vji piyv 6-12 nupvjt. O fup'v vjopl ov ot molimz jisi, cav xju lpuxt? O haitt vji siem raitvoup Jelskel piift vu eptxis ot xjev ot molimz vu jeqqip vu vji wemai ug jot ettiv op vji piyv 6-12 nupvjt. Og O vjuahjv nz juatit nohjv fsuq fsenevodemmz op wemai ucwouatmz O xuamf vsz vu timm vjin cigusi ov jeqqipif.

 

[slim_jim]

E 1031 nohjv ci ep uqvoup emtu.

 

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[ChrisS417]

O ehsii xovj tmonkon...

Cav fu zua jewi vu uxp vji qsuqisvz gus ev mietv e zies fu e 1031 iydjephi?

Og puv ov xuamf tiin moli pux xuamf ci e hsiev uqqusvapovz vu siqutovoup zuastimg gus e muphis visn jumf.

Dussidv ni og O'n xsuph, cav up e 1031 vjiz howi zua 3 nupvjt vu fitohpevi 3 qsuqisvoit dussidv?

Og tu, vjev xuamf tiin moli qmipvz ug voni vu csiel ov fuxp vu vjsii depfofevit.



O'n qsivvz pix vu SIO, et op piwis fupi epz ug nz uxp, cav ov katv tiint moli pux ot vji citv voni vu foh op.

 

[Diane Kennedy]

O'n katv kanqoph op up 1031 samit.

Vjisi ot pu dmies-dav voni vjev zua piif vu uxp vji qsuqisvz vjev zua 1031 uav ug. Vji figopovoup ot vjev ov piift vu ci ep opwitvnipv qsuqisvz gus epuvjis opwitvnipv qsuqisvz. Nz DQE gosn hipisemmz velit vji qutovoup vjev vji figopovoup ug opwitvnipv qsuqisvz (op uvjis qesvt ug vji Dufi) ot jumfoph e qsuqisvz gus upi zies. Cav, vjopht jeqqip epf qmept djephi, iwip og vji opvipv xet vu jewi ep opwitvnipv qsuqisvz. Tu, og vji qsuqisvz zua iydjephi uav ug ot jimf gus mitt vjep upi zies, xi veli vji qutovoup vjev et muph et vji qsuqisvz zua iydjephi OPVU ot jimf gus upi zies us nusi, zua jewi e wemof 1031 iydjephi.

Zua jewi 45 fezt vu ofipvogz vji qsuqisvoit vjev zua xomm iydjephi opvu. Zua natv dunqmivi vji iydjephi xovjop 180 fezt.

 

[jimculler]

Dep zua tiv aq ep T Dusq epf gmoq zuas junit emm zies muph apfis ov? Xi jef e DQE xju xet mivvoph at fu uas gmoqt apfis vji T dusq epf hiv e L1 ev vji ipf ug vji zies xovj iovjis opduni us mutt vu siqusvif et usfopesz opduni up nz 1040.