Newbie-Buying Foreclosure And Then Selling-tax Implications

I am going to start buying foreclosures. I would like to buy a foreclosure and then sell right away hopefully with a small to large profit. What are the tax implications and are there any? I live in NJ. Thank you

Comments(4)

  • tclifford108th January, 2004

    Hi there and good luck! To start with you will have short term capitol gains as well as the normal State and City income taxes, so take that into consideration. Anyone else to help?

  • chinopec8th January, 2004

    Thank you Clifford. Is there also a rule now in NJ that you cannot sell a house until a year or is that only specific types of investments.

  • InActive_Account8th January, 2004

    Buying with the intent of selling classifies you as a dealer. Like any other business you pay taxes on the profit as ordinary income.

  • chinopec8th January, 2004

    Thanks Sammy. Whats the percentage? So is it the gain that gets taxed? im sorry for some of these basic questions.

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