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