So I've got two sets of relatives one has been flipping for a bit, does 2-3 a year and keeps the good ones as rentals and not to get screwed over tax wise making it profitable as they say. They got their brother into flipping.
Brother isn't good with finances. In 40s and borrowing money from dad to pay utilities not good with finances, but somehow got into flipping. They've been doing a house seemingly every month give or take. I'm just guessing from home prices around here currently they're probably buying around the $100k mark and possibly selling as high as $200k again give or take. Not sure what they're spending on fixing up but I'm out $10k on rental that got destroyed by tenants and that's just cleaning and repairs so maybe $10-50k depending on the flip.
I'm no tax expert and don't fully understand capital gains tax. But I feel like they're about to shoot them selves in the foot and be taxed to high hell with all the flips making all the trouble and work not even worth it. Should I say something or am not getting what's going on and I'll just make myself look like an asd? If any one can help explain it better I would greatly appreciate it. I read the IRS rules online but ya it's irs rules lol. Thank you.
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source https://www.reddit.com/r/RealEstate/comments/wzpnng/flipping_houses_and_capital_gains_taxes/
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