3 ms·

There is no "ridiculously favorable tax treatment" for flipping, only long term ownership.

• gnicholas 7y ago
  There is section 1031, which allows the deferral of gains for years or decades if the investor purchases a qualifying replacement property.
  • djrogers 7y ago
    Generally speaking, flippers don't qualify for 1031 exchanges. "In Barker v. U.S., a property purchased solely to exchange for other property was determined to not meet the “held for” requirement. Accordingly, if it is clear the intent was resale and not investment, then the transaction is ineligible for a 1031 tax deferred exchange." - https://www.sundincpa.com/1031-exchange-flipping-houses/ https://www.sundincpa.com/1031-exchange-flipping-houses/
    • gnicholas 7y ago
      The linked source indicates the complexity of this test. I'm sure plenty of flippers take advantage of 1031, even if they sometimes are challenged by the IRS.
    • Spooky23 7y ago
      Flippers don’t, but you can fix it up, rent for a reasonable period of time and then sell.