Thursday, September 29, 2005

Tax Consequences of Flipping Houses


There's a good article at Bankrate.com about the investment practice of flipping houses. With skyrocketing values of home across the nation, this has become an even more popular investment strategy.

A current client of mine recently bought a property and is wanting to flip it. I recommended she use it as a rental for a period of time, then sell it when it qualifies for a 1031 exchange. Under this strategy she could defer taxes. Surprisingly, her accountant told her not to worry about the tax implications because, if she was going to make a lot of profit, why would she care about paying part of it to taxes. I totally disagree with that thinking when there is a strategy to make the profit AND avoid the taxes.

Just so an investor considers all the possibilities and makes an informed decision, it's fine with me.

Yours for success & prosperity,
Carol

6 comments:

Anonymous said...

Cool blog! I will be sure to tell my readers about it! I have a site weight training tip . I have some good articles on #KEYWORD## that you can read and some are reprintable for quality sites like yours if you need material for your readers some time!

Simple 101 said...

Your blog is informative. I do apartment loans as well.

Get-A-Free-House said...

How would you like to own a custom-built house at a 42% to 100% discount? Find out how today by visiting Get-A-Free-House.com

Kely said...

Hello I want to congratulate to you. This site is fantastic, looks like entertained and very good to me it elaborated. I invite them to that they explore a little on my site of the Web
Our real estate listing includes great opportunities on Costa Rica Central Valley’s provinces such as San Jose, our Capital, with remarkable cities as Escazu at the west, or Curridabat at the east, experiencing a great development on both commercial and residential properties, making their real estate pricing highly attractive to investors; on other hand, Alajuela city gathers places with a very special warm weather such as Grecia, La Garita and Atenas, or beautiful farms for agricultural, cattle or nature preservation purposes as those located on San Carlos or Sarapiqui. We also offer land properties in Guanacaste, which is the province, along with Puntarenas, with the most beautiful tropical beaches on the Pacific Coast such as Tamarindo, Playa Grande, El Coco, Playa Hermosa, Nosara, Samara, Herradura, Jaco, Manuel Antonio, Dominical and Golfito, where the real estate business occupies the first place as the local economic activity.
Great investment opportunity at Costa Rica Pacific Coast, Preconstruction condos in costa rica
Condo sales in costa rica, Retirement property in costa rica. Visit us for more info at: http://www.costa-ricarealestate.com/

Celia Dávila said...

this report is fantastic, the infomation you show us is really interesting and very important. Do you want to see something more? you can visit too:

Great investment opportunity in Costa Rica: jaco beach real estate, map jaco beach, hotel in jaco beach costa rica. Visit us for more info at: http://www.jaco-bay.com/

Omar Cruz said...

These articles are fantastic; the information you show us is interesting for everybody and is really good written. It’s just great!! Do you want to know something more? Read it...:Great investment opportunity in Costa Rica: costa rica retirement homes, costa rica retirement tours, costa rica. Visit us for more info at: http://www.costarica4retirement.com