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How To Re-sell (flip) My Lot And Not Get Taxed To Death?

LQQKING profile photo
  • Tuesday, November 25, 2003 @ 03:07 PM EST
  • 5 Comments

Hello,
Thanks for reading my post.

I bought a lot and a friend now wants to go in with me on a larger lot. What is the best way to flip the lot. How long do I need to hold on to it before I can use capitol gaines. I think two guys on either side want it to expand their lots?

Any help will be appreciated.

Thanks

Comments(5)

  • DaveT
    DaveT25th November, 2003

    The general rule is investment property held longer than one year qualifies for long term capital gains tax treatment and the maximum long term capital gains rate of 15%. With a shorter holding period, profit on the sale of your investment property will be taxed at your marginal tax rate -- the same rate as your ordinary income.

    Remember, only your profit is taxed, not your entire sale price.

  • no photo
    LQQKING25th November, 2003

    Davet,

    Thanks for the reply. Beautiful place you live in.

  • no photo
    myfrogger25th November, 2003

    Also keep in mind from an investor standpoint that a fast nickel is better than a slow dime. If you can buy one property in a year and you save 10% or so but you could have bought and sold 10, are you really saving money?

    My two cents...

  • no photo
    InActive_Account25th November, 2003

    A bird in the hand is worth two in the bush...

  • no photo
    LQQKING25th November, 2003

    Now, I guess, I need to figure out where my break even point is (sorry what is the correct term) so I will know how much to sell it for.

    Thanks

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