Really?

NEW -> Contingent Buyer Assistance Program
There are lots of reasons someone would remodel then abruptly move on-  like, winning the lottery,  finding out the house is haunted, etc......  ;)
 
furioussugar said:
There are lots of reasons someone would remodel then abruptly move on-  like, winning the lottery,  finding out the house is haunted, etc......  ;)
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Wonder if Troller Simpson could add any more ideas why one may do this.
 
Coleman said:
furioussugar said:
There are lots of reasons someone would remodel then abruptly move on-  like, winning the lottery,  finding out the house is haunted, etc......  ;)
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Wonder if Troller Simpson could add any more ideas why one may do this.
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The abrupt move... yes... the remodel... no. :)
 
Hmmm....the one reason to quickly move that I'd add:

Witness Protection Program.

Expect the seller to push this property into an LLC right before closing, the true sign of a flip.....besides the overuse of pergo, faux stone facing, slotted front yard fencing, and other off the shelf Home Depot/Lowes "upgrades" you can see in the pictures.
 
USCTrojanCPA said:
Unless they plan to do a 1031 exchange....they are going to have about a 50% tax bill on the gain. 
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Can't you claim hardship (i.e job change, I've got another house to flip!) and take a prorated exemption?  So 23/24 times $500k, still a good profit.
 
ps9 said:
USCTrojanCPA said:
Unless they plan to do a 1031 exchange....they are going to have about a 50% tax bill on the gain. 
Click to expand...

Can't you claim hardship (i.e job change, I've got another house to flip!) and take a prorated exemption?  So 23/24 times $500k, still a good profit.
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It's an all or nothing on the gain exemption, you can't prorate it.  All of the gain gets treated as ordinary income since the hold period is under 1 year...so the tax could be max fed rate + max CA rate + 3.8% Ohbummer health care tax.  Yup, another reason why I trade VIX options where 60% of the gains get traded as long term capital gains even if I hold them for 1 day due to them being 1265 contracts.  :D
 
OpenSky said:
USCTrojanCPA said:
ps9 said:
USCTrojanCPA said:
Unless they plan to do a 1031 exchange....they are going to have about a 50% tax bill on the gain. 
Click to expand...

Can't you claim hardship (i.e job change, I've got another house to flip!) and take a prorated exemption?  So 23/24 times $500k, still a good profit.
Click to expand...
It's an all or nothing on the gain exemption, you can't prorate it.  All of the gain gets treated as ordinary income since the hold period is under 1 year...so the tax could be max fed rate + max CA rate + 3.8% Ohbummer health care tax.  Yup, another reason why I trade VIX options where 60% of the gains get traded as long term capital gains even if I hold them for 1 day due to them being 1265 contracts.  :D
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My understanding is the 3.8% tax only kicks in after gains exceed a certain amount. And only on gains above that amount.
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It kicks in on investment gains once you have an AGI over a certain amount (I'm thinking $100ish but I'd have to double check).  I know about it because I pay that tax.  :(
 
OpenSky said:
http://www.huffingtonpost.com/2012/12/04/obamacare-investment-income-tax_n_2236687.html

To illustrate when the tax applies, the IRS offered an example of a taxpayer filing as a single individual who makes $180,000 in wage income plus $90,000 from investment income. The individual's modified adjusted gross income is $270,000.

The 3.8 percent tax applies to the $70,000, and the individual would pay $2,660 in surtaxes, the IRS said.
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Boo hoo.

Like current interest rates, marginal tax rates are historically very low.

US-Income-Tax-Marginal-Rates-1024x555.png


Instead of bitching about taxes, make more money. Frankly, I'm more pissy about inflation than taxes - probably because it's within my control to hedge.
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Agreed.  Step up yo game homie
 
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