Planning A House Flip? Here's How It Affects Your Taxes
Like many new business ventures, the process of buying, renovating and selling a house for profit -- so-called "flipping" a home -- is both exciting and fraught with potential pitfalls. If you're looking to get into the flipping business, it's important to understand the taxes involved so that you ensure your best profit. Here is a quick primer on home flipping tax treatment.
Business or Investment
There are two major questions that determine how your profit from home flipping is taxed.