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D, Real Estate Pro in 94158

How much taxes % need to be paid when flipping a property bought through a tax deeds auction in California?

Asked by D, 94158 Thu Feb 6, 2014

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If you are selling the property less than 1 year after you bought it for an amount greater than your basis then at the very least you will be required to pay short term capital gains tax. In addition, you may be subject to an additional 3.8% tax. The 3.8% tax is imposed ONLY on those with more than $200,000 of Adjusted Gross Income (AGI) ($250,000 on a joint return). I included a link below for your reference. I don't specialize in taxes so I would highly recommend that you talk to a tax professional first.
0 votes Thank Flag Link Thu Feb 13, 2014
Also, short term capital gains are taxed at the same rate as your ordinary income. In addition, you will have to pay California state income taxes.
Flag Thu Feb 13, 2014
hi, speak with your tax accountant; this article on tax consequences of flipping may shed some light on the subject
http://www.bankrate.com/finance/money-guides/tax-consequence…
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1 vote Thank Flag Link Thu Feb 6, 2014
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