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
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?
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.
Buying with the intent of selling classifies you as a dealer. Like any other business you pay taxes on the profit as ordinary income.
Thanks Sammy. Whats the percentage? So is it the gain that gets taxed? im sorry for some of these basic questions.