How do you pay for taxes when flipping houses while spliting profit ?
xxjae_bxx asked:
I plan on starting a business designed to flip houses and eventually go on to commercial real estate. The income will be placed back into the company and the company will hand out checks to the workers which will be me and my friend . Does my profit from my house flips still get taxed as self employment or what ?
I plan on starting a business designed to flip houses and eventually go on to commercial real estate. The income will be placed back into the company and the company will hand out checks to the workers which will be me and my friend . Does my profit from my house flips still get taxed as self employment or what ?
2 Responses to “How do you pay for taxes when flipping houses while spliting profit ?”
June 19th, 2008 at 1:10 am
i would not present this question to an answer board. What you need to do is talk to a good accountant or a real estate attorney ( not a personal injury or corporate atty but an atty whose main area of practice is real estate.). May cost you a little to pick thier brains but believe me it will save you a lot of stress and trouble, Write down your questions and concerns before you go to meet with them.
June 22nd, 2008 at 12:26 pm
If you are in the business of flipping houses for profit, then the profit is self-employment income, not capital gains.
If you flipped only an occasional house and were not engaged in the business of flipping houses, then the gain would be capital gain.
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