In Part One, we explored some ideas for converting your profits from ordinary income to long-term capital gains. The tax benefits available to home flippers also depend on proper accounting and recordkeeping to ensure you deduct all applicable expenses. Start with Proper Recordkeeping Your fix-and-flip project will have many expenses. To maximize your tax deductions, Read More…

When you consider all the factors that affect the profitability of your fix-and-flip business, taxes loom large. The IRS will take a nice chunk of your profits, leaving you less to reinvest in your next project. Normally, your profits are taxed as ordinary income at your marginal tax rate. In Part Two,we will discuss how Read More…