Yerkes Upstate SC Blog
28
Mar

Flipping Properties Can Be Costly

Real-Estate Flip Deals Have a Catch


Amateur "flippers" in the real-estate market have more to worry about than a bubble. Many of them could be facing an income-tax audit -- and higher tax bills than expected.

The popularity of so-called flip deals has made section 1031 of the Internal Revenue Code popular with real-estate speculators. In a 1031 exchange -- also known as a "like-kind" exchange -- a person who sells a business or investment property can defer capital-gains taxes by immediately rolling the gains into a similar piece of property.

The trouble, tax experts say, is that people don't understand the rules. Many trust the advice of real-estate brokers, who often aren't well versed in tax law. Some amateurs are buying and selling properties too quickly, running the risk that the Internal Revenue Service may deem the transactions a person's trade or business, with gains taxed as ordinary income and subject to self-employment taxes. (Source: WSJ - DJWirenews)


Click here for full story      [Note: WSJ Subscription required to access]



 

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and/or sell your property at the best possible price.

 

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Complements of:


Yerkes Upstate Real Estate Services

RESIDENTIAL, INVESTMENT, COMMERCIAL

LAND, FARM, PROPERTY MANAGEMENT
Global Relocation and Referral Services

Personal * Service * Support * Professionalism * Integrity

Providing friendly dedicated service - customized to your needs.

Using state-of-the-art methods to find the right property for you
and/or sell your property at the best possible price.

 

Direct Mobil:  864-209-1864
 

YerkesUpstate.com

 



Lawrence Yerkes
SC Broker License# 100261
Mobile: 864-209-1864
Office: 864-412-4281
Website: Visit Website
eMail: Contact

Only Way Realty Greenville
20 Roper Corners Circle Suite B
Greenville, SC 29615
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