First Time Flipper..please Help!
Hi all,
I found a house to flip, but am putting the note and deed in my dad's name because my debt to income ratio was not working out. We bought the house for 78k, will put 12k into it, and resell for 115k. I don't have any idea how to avoid the capital gains tax if we don't find another one and do the 1031. We would like to flip it within 6 months...should we try and keep it longer? 
You're not eligible for a 1031 on a house you only keep for 6 months. It's considered inventory, and taxable at your regular rate. 1031's are for longer term holds.
Oh..ok,
Then should I just keep all of my receipts and write my income off that way. I guess I just want to know the best way to show that I didn't make the 25-30k.
you can't "legally" not show that you didn't make 25/30k. you can only structure yourself to cover it with deductions.......km
Your better off to pay for it now, rather than pay for the time in the slammer. Don't try and get around it. There is always a money trail. If for some reason, it gets looked into you, your in big trouble. Keep it honest, try to write off the most you can legitimatly, get a GOOD accountant (one who is creative and good with real estate). Keep a log of gas milage (very importatnt). And reciepts for just about everything.
Maybe a moot point but wouldn't the gain be the dad's not the son's? Unless the dad actually paid the son to do work?
either way someone has to claim the profit unless it is a personel res. that they have lived in for 2 or more yrs. it will still have to be reported but would be tax excempt........