Tax Ramifications
Hi all,
Another question for the gurus of foreclosure investing...In general, how long do you like to hold properties for after you buy them and what are the tax consequences buying, fixing and selling in a short period and are there ways around that? I recently read that the biggest drawback of "flippers" is the resale profits are taxed as ordinary income. However, if the property is held over 12 months, then it qualifies for the much lower long-term capital gains tax rate, currently a 15 percent maximum on federal income tax returns. I am in NJ if different rules apply to different states. Please enlighten! Thanks in advance!
Comments(0)