Capital Gains?

[boatboy]

I am 21 and plan to flip a house in NE Ohio sometime soon. I have rea many idd things on capital gains. The thing that seems to be true is that after you get a pfoit from flipping that is axed by 1/3 due to capital gains.
Any truth in this and does anyone know the exact % and ways to go around this?

-Dave

[jellyfish]

That is true. If you take the gains to spend them it is taxed much like you are taxed on income. However, if you do what is called a 1031 exchange for a like property then you can differ capital gains until you finally take the gain and spend it...

[boatboy]

thanks a lot! i appreciate the advice

[timtarpley]

A property sold within a year is taxed as short term capital gains, but if held more than a year it is long term and a lesser rate.