The “gurus” have a niche. If you tell us which real estate investing niche you are interested in, maybe we can give you a more definitive answer.
If you are just starting out and looking for a basic primer on real estate, I suggest Carleton Sheets. I got his course when I first started back in the 80s. I bet a lot of successful investors over the years started with the Carleton Sheets materials.
There is a difference between investment property and dealer realty. Property you buy to flip is dealer realty and the capital gains rules don’t apply.
If you are flipping in your own name, dealer realty tax treatment taxes profits as self-employment income. This means that you pay ordinary income taxes in addition to social security and medicare taxes. If you are in the 25% tax bracket, the federal tax liability on your flip profit would be 40.3%.
There is no holding period limitation on flip property either. Dealer realty is always taxed as dealer realty even if the holding period is longer than one year.
2 posts found
REObuyer writes, May 22, 2008: (2 posts)
(Topic: Other Stuff! / The best real estate guru?)
David,
The “gurus” have a niche. If you tell us which real estate investing niche you are interested in, maybe we can give you a more definitive answer.
If you are just starting out and looking for a basic primer on real estate, I suggest Carleton Sheets. I got his course when I first started back in the 80s. I bet a lot of successful investors over the years started with the Carleton Sheets materials.
REObuyer writes, May 22, 2008: (2 posts)
(Topic: Financing, Law and Taxes / Flipping Has Tax Consequences)
There is a difference between investment property and dealer realty. Property you buy to flip is dealer realty and the capital gains rules don’t apply.
If you are flipping in your own name, dealer realty tax treatment taxes profits as self-employment income. This means that you pay ordinary income taxes in addition to social security and medicare taxes. If you are in the 25% tax bracket, the federal tax liability on your flip profit would be 40.3%.
There is no holding period limitation on flip property either. Dealer realty is always taxed as dealer realty even if the holding period is longer than one year.