Introduction

Learn about how the IRS classifies land flipping as a retail business and why it is taxed as ordinary income, regardless of how long you hold the land.

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Episode notes

Taxes often pose intricate challenges to real estate enthusiasts, but with expert guidance, their complexities can be unraveled. Step into the enlightening world of "The Real Estate Investing Podcast" as Ron Apke dives deep into the tax labyrinth of land flipping, accompanied by renowned CPA, Ashish Acharya.

In this insightful episode, "Taxes and Land Flipping with CPA Ashish Acharya," Ron seeks to extract the nuances and intricacies of tax regulations and implications surrounding land flipping. Ashish, with his vast experience and specialization in real estate taxation, offers listeners a clear and detailed perspective on optimizing tax strategies within the legal framework.

Key discussions encompass:

Distinguishing between capital gains and ordinary income.
Unveiling the effects of holding durations on tax rates.
Exploring the realm of tax deductions and write-offs tailored for land investors.
The paramount importance of meticulous record-keeping and documentation.
Designing deals for maximum tax advantages.
Unraveling common tax misconceptions and pitfalls inherent to the land business.

Ron and Ashish also highlight the critical importance of aligning with a CPA versed in the intricacies of land flipping, emphasizing the benefits of such expertise. Using real-world examples, they provide listeners with strategies to mitigate tax liabilities and underscore the significance of forward-thinking tax planning.

Whether you're an experienced player in the land flipping game or a novice keen on understanding its tax landscape, this episode is a treasure trove of insights. Tune into "Taxes and Land Flipping with CPA Ashish Acharya" and equip yourself with the knowledge needed to navigate tax responsibilities effectively, ensuring the best possible returns on your investments.

Investor Friendly CPA Website: https://www.investorfriendlycpa.com/

TIME STAMPS

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7:49 What entity should you file as

12:19 Allocating taxes after deals

14:47 How to file state taxes for deals

19:29 Benefits of Real Estate professional status

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