Taxes on flip houses

[varnie]

Hello - I'm hoping for some good news....I sold a flip house last year and was told that any profit would not be taxable as long as I invested the profit money in another house, so I did so. Now....my tax preparer is telling me that I owe taxes on the profit and that law only applies to your primary residence. I have called around to different tax preparers hoping for a different answer.............any advice is appreciated. This was my first flip and now I'm really confused! Thanks.

[Lady Flipper]

These laws change constantly.

I think you have to be incorporated to save the taxes...but I really can't give you legal or tax advice.

[realestatehound]

I can tell you that in Ky. the roll over only apply's to your resident. I have flipped a bunch of homes and I have to pay tax's on every one of them. I run mine through an S Corp now just so that if someone were to sue they would have to sue the corp. Their are to my knowledge no tax breaks when you flip a house as the profit is taxed just like any other wages you earn. You just have to plan for it.

[flip_it_fast]

Uncle Sam wants his cut and I believe he wants it from house flippers too. It stinks but thats just how it goes. I am not positive but I do believe that there is no way around it.

Don't taxes stink!!!