Question for you property flippers....

[GraytonBound]

Smiling Joe, I think snowdome collection refers to those water-filled souvenirs available at Wal-Mart and other fine retailers. It could also refer to old guys w/dandruff driving around in their Sebring convertibles.

 

[Dreaming watercolor]

Interesting question raised this morning. I just spent a half hour on the phone with my CPA. He advised me that if you assign the contract after 1 year it is treated as a capital gain not ordinary income. He stated he has had a lot of clients who have flipped properties in Galveston Tx. Just my 2 cents

 

[RiverOtter]

Interesting question raised this morning. I just spent a half hour on the phone with my CPA. He advised me that if you assign the contract after 1 year it is treated as a capital gain not ordinary income. He stated he has had a lot of clients who have flipped properties in Galveston Tx. Just my 2 cents

Sounds like I need an new accountant

 

[Kurt]

Interesting question raised this morning. I just spent a half hour on the phone with my CPA. He advised me that if you assign the contract after 1 year it is treated as a capital gain not ordinary income. He stated he has had a lot of clients who have flipped properties in Galveston Tx. Just my 2 cents

Maybe Texans get special deals. :wink:

You must really love numbers if you can spend 90 minutes on the phone with a CPA.

 

[landlord]

although i am an attorney (ceo of a private reit ) and have commercial office buildings in 7 states, i am not a cpa. nevertheless, i would be surprised if capital gains treatment would apply in an instance where the purchaser never closed, but merely assigned a purchase agreement. but, again, i am not a cpa.

 

[Kurt]

although i am an attorney (ceo of a private reit ) and have commercial office buildings in 7 states, i am not a cpa. nevertheless, i would be surprised if capital gains treatment would apply in an instance where the purchaser never closed, but merely assigned a purchase agreement. but, again, i am not a cpa.

I have gotten conflicting information. I think many people do not want a definite answer.

 

[Waterman]

I have gotten conflicting information. I think many people do not want a definite answer.

CONCUR!!! :clap_1:

 

[Advance The Man]

You must own it for 12 months and a day. Having a contract is not sufficient, the developer still owns the ongoing incomplete condo.

To get around this, legally by the way. You establish a LLC, have the LLC own the condo, get buyer prior to closing and 'sell' your LLC. As long as your LLC has been established for longer than 12 months and 1 day you only pay 15% cap gains.

We start LLC's frequently for this purpose down the road of selling the LLC.

 

[Georgian]

How does one sell a LLC to a buyer who thinks they are buying a condo? Tell me more. I'd like to know how the process works.

 

[Smiling JOe]

You must own it for 12 months and a day. Having a contract is not sufficient, the developer still owns the ongoing incomplete condo.

To get around this, legally by the way. You establish a LLC, have the LLC own the condo, get buyer prior to closing and 'sell' your LLC. As long as your LLC has been established for longer than 12 months and 1 day you only pay 15% cap gains.

We start LLC's frequently for this purpose down the road of selling the LLC.

Very interesting. Sounds reasonable, but would probably scare most people around here. I have not heard of people doing this in this area, but I can feel the ground shake as people run to their accountant while I type.