tax on rehab profits??? - Posted by steve (CA)
Posted by steve (CA) on January 12, 2004 at 23:20:23:
my first deal just closed. i went partners with someone with the front money. they purchased a home and i rehabbed it. bought for 91,000. sold for 145,000. rehab costs of 28,000. now, my question is, what would ballpark closing costs and fees come to? also, how would this be taxed? (the house was vacant btw) i am just wondering because apparently my half is 7500 for a very extensive rehab (over 400 hours personal labor). i’m just wondering what went wrong.