Posted by John on March 30, 2006 at 10:33:43:
The profit here is taxed as income if you held title less than 1 year. Over 1 year and 1 day it is capital gain
NEED SOME THOUGHT!!! - Posted by MIKE
Posted by MIKE on March 30, 2006 at 09:52:45:
This is my first deal on the works. I am buying a house for sale for $250k property is in good shape and am using funds from a private money lender. Property needs no repairs and comps in the area is $325k plus. Since I will be taking ownership and selling the house within a short period(within 6 months)will that be considered income tax or capital gains tax?
Any thoughts will be appreciated.
Re: NEED SOME THOUGHT!!! - Posted by Darren TX
Posted by Darren TX on April 02, 2006 at 21:46:47:
Form an LLC to do the deal…keep the profits in the LLC as tax shelter…
Re: NEED SOME THOUGHT!!! - Posted by Pat
Posted by Pat on March 30, 2006 at 14:41:03:
As there appear to be differing opinions, I’d suggest you consult a CPA.
Re: NEED SOME THOUGHT!!! - Posted by The Frisco Kid
Posted by The Frisco Kid on March 30, 2006 at 13:57:50:
Mike
Contrary to the other posts it is capital gain. The difference is whether it is short term capital gain or long term capital gain. Do not classify it as ordinary income unless you want to help the irs declare you a dealer. The short term capital gain is at the ordinary income rate but it is still a capital gain.
Re: NEED SOME THOUGHT!!! - Posted by dutch
Posted by dutch on March 30, 2006 at 13:09:25:
Anything under a year is ordinary income.