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Is anyone familiar with the tax rules on flipping house income and any impacts with the new tax laws?

wfgfinancial-pl
Level 1

Tax rules on deduct flipping expenses and how the profit to be treated as capital gain or ordinary income?

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abctax55
Level 15

The new tax laws didn't change the treatment of "flipping" houses.

What's the specific fact pattern?

Former Chump..oops..AllStar...I used to be a people person, then people ruined it


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abctax55
Level 15

The new tax laws didn't change the treatment of "flipping" houses.

What's the specific fact pattern?

Former Chump..oops..AllStar...I used to be a people person, then people ruined it


If a post answers your question, click on *Accept as solution* for future searches

View solution in original post

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wfgfinancial-pl
Level 1
Thanks for the response. Is the profit from the flipping treated as capital gain or ordinary income?  How do the related flipping expenses to be treated in either of the assumption? I spent 50k this year to repair and remodeling the house. How should I deduct this expense this year or just add it to the basis of the house?
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itonewbie
Level 15
What did your paid tax professional tell you?  I'd follow the advice or pay to consult with someone competent if you want a second opinion.
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Still an AllStar
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IRonMaN
Level 15
The reporting depends on how often you do it.  If you flip one house in ten years, you have a capital gain.  If you are in the business of flipping on a regular basis, it is ordinary income and goes on a schedule C.  The costs get added to the basis.
ACME Taxes, Tatoos, Tires and Tomatoes (I had to get rid of the turtles - they kept running away)
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