Seasoning And Capital Gains Tax
I am a beginning investor, and I flip a majority of the properties I control. I am not sure of the seasoning period of a property to consider capital gains or just ordinary income. Can someone help me? I live in Indiana.
[ Edited by erossprop1 on Date 03/03/2004 ]
Good question. When it comes to capital gains always remember that they are a GOOD thing because they mean you have made money and in real estate investing that is the name of the game!!! Now some people want to make more than others or get greedy but do what works for you. In most cases holding onto a property for more than a year will drop the gains into a lower tax % but you also have to factor in the carrying costs fo the property to get it to one year.
I'm sure you'll get some really good advice from the pros but I just wanted to add my .02 worth--Capital Gains are Good! Just don't over pay and use the system to your advantage.
PD