Year-End Tax Tips for House Flippers

Year-End Tax Tips for House Flippers

Get Fast Financing with a Washington Private Money Loan

Successful real estate investors know that making a profit takes more than buying and selling property.

Understanding and being prepared for taxes plays an important part in ensuring the highest possible return on your investment.

House flippers deal with both benefits and challenges when it comes to taxes. As the year-end approaches, there’s still time to leverage your tax picture.

Begin to prepare now. Start gathering all your tax-related information and identify a reliable tax professional before the new year. And follow these flipper tax tips to get a jump start on tax season:

Real Estate Investor Tax Tips: How to Leverage Your Fixer Upper

  1. Purchase tax deductible supplies and materials for your house flip renovation before year-end to maximize allowable deductions.
  2. Make repairs on your fix and flip property now and spend the dollars to do so, including contractor labor. Note that major improvements add value to your asset and must be depreciated over time, while repairs are deductible.
  3. If you’re ready for property inspections, schedule them before December 31. Inspection fees are typically deductible, and you may be able to take them for this year.
  4. Delay closing on a renovated fix and flip sale until the new year. If a buyer is eager to close sooner for their own tax purposes, crunch the numbers. It may be worth paying some of their closing costs and negotiating the date.

Each investor picture is unique. Our tips are informational only. Be sure to consult with a professional tax advisor about your individual investment scenario.

Consider a Washington Hard Money Loan for Real Estate Financing

If you’re trying to move quickly on a real estate investment project or repairs and need immediate financing, a hard money loan could be the answer. Gregory M. Russell private money loans are equity-based, and our loan approval process is streamlined. You can have cash in hand in ten days or less. Many Washington real estate investors have partnered with our experienced team to successfully reach their investment goals. We have over three decades of experience in the industry and provide a variety of loan service options. Give us a call at 1-888-477-0444 to learn more. Or simply complete our online loan request form. It takes just minutes. We look forward to working with you.