Home Buying in Tinley Park>Question Details

smilin1, Home Buyer in Tinley Park, IL

If I invest in real estate to flip homes and then sell them in a few months will I have to pay short term capital gains tax?

Asked by smilin1, Tinley Park, IL Mon Oct 7, 2013

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If you are venturing into this lane, definately get yourself a good group of professionals to back you up. Ask an accountant about this, but here is the short answer. Many investors set up corporations or llc's to limit liability and separate personal and income from real estate investing.

The short answer is - generally if you make money, you are going to pay taxes.

I can recommend a good cpa who is very familiar with real estate investing. Feel free to contact me.

Suzanne Hamilton
Managing Broker/Owner
RE Homes Source
888-788-9544
suzanne@remarketingconsultants.com
0 votes Thank Flag Link Mon Oct 7, 2013
I would give your accountant a call and ask him/her.
0 votes Thank Flag Link Mon Oct 7, 2013
I agree with Tony & Geoff! Consult the experts on tax questions - your CPA or a tax attorney. If you don't currently use an accountant or CPA for your taxes, ask business associates for a recommendation. Or I can refer you to an excellent CPA firm in Orland Park....give me a call at 708/906-8009.
0 votes Thank Flag Link Mon Oct 7, 2013
Yes or No.
Depends on the instrument of ownership you use.
-
You need to consider long term wealth building and profit based short term models.
The solution is not expensive nor complex.
The outcome, however, is completely dependant on how you begin.
As Geoff suggested, you need to consult your investment counselor, accountant or attorney.

Best of success.
Annette Lawrence, Broker/Associate
Remax Realec Group
Palm Harbor, Fl
727.420.4041
0 votes Thank Flag Link Mon Oct 7, 2013
That depends on several factors. If you're going to spend enough money to get involved in rehabbing property it will be well worth your time and money to seek out a C.P.A to advise you on structuring your business best to minimize tax liability.
0 votes Thank Flag Link Mon Oct 7, 2013
That is a question you should ask an accountant. There are a lot of variables which will depend on your personal situation. I flip and rent homes and have had to account for profits differently in each situation.

Geoff Ommen
Broker Baird & Warner
847-271-2622
geoff.ommen@bairdwarner.com
http://www.geoffgetsit.com
0 votes Thank Flag Link Mon Oct 7, 2013
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