Tax Consequences of Flipping Houses
As prices soared and interest rates hovered near record lows, flipping houses became one of the hottest investments for many Americans. People from all walks of life began buying homes for the sole purpose of reselling them at a profit, and many of them did significantly better than if they'd put an equal amount of money in the stock market.
However, many investors also were in for a shock when they began telling the Internal Revenue Service about their house-flipping profits. Much of the confusion comes from a misconception that stems from the laws regarding the sale of a personal residence.
Read the full article: House Flipping and Tax
However, many investors also were in for a shock when they began telling the Internal Revenue Service about their house-flipping profits. Much of the confusion comes from a misconception that stems from the laws regarding the sale of a personal residence.
Read the full article: House Flipping and Tax
posted by Jeanette at Thursday, November 16, 2006
3 Comments:
It says that you are happy to answer questions. I have a few questions. What is the best way for me to submit question? Thank You
Hi,
We try to answer all questions during our free teleseminars. You can register for the teleseminars at http://www.doghousetodollhousefordollars.com/flipping_houses_teleseminars.html
You can also post questions on this blog or email me from http://www.jeanettefisher.com
I read your article of tax consequences of flipping houses, and I understand its points, but I wish it would have gone one step further. If I form an LLC to do house flipping, I am a business, so I understand the tax consequences of that, which is fine with me. What I don't understand, and can't seem to find, is when to declare the expenses of fixing up the house. I have resources that say to capitalize all of them and take them upon sale, and others that say to capitalize improvements and take taxes and interest in the year of expense. Do you have any comments on this?
Post a Comment
<< Home