The complete costs of house flipping

December 27, 2009

Since our house has been under repair, I've been visiting housing sites for other possible changes we might want to make. Hey, if you're already in disarray because of renovations, why not get everything out of the way all at once?

During my surfing, I ran across the BuildDirect Building Materials Blog, which had this interesting graphic detailing some possible costs of flipping a house.

Cost of Flipping House

Remember, too, that you'll have to pay taxes on any profit you make on the sale. And if you're lucky enough to turn over the property after owning it for a year or less, that tax rate will be at your ordinary income level, not the lower capital gains rate.

But if you've weighed the costs, know your region's real estate market and are ready to invest in a property,this story has some tips on dealing with the tax consequences you might encounter when you flip it.

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Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

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Comments

chris

16 years ago

Ditto to the comment above. There are a lot more cost involved and the revised price may put you over whatever the market will bear.
Tim Hawkins

16 years ago

This list ignored: carrying costs (interest on your down payment lost + interest payments on the home loan + interest payments on the repair costs if separate) consider also the rate will be higher for a fixer since it’s not your primary residence, closing costs on the front AND back end (points, inspections, deed/recording fees, title insurance, lender fees, appraisal fee, transfer tax, application fee, escrow fee, termite inspection fee, attorney’s fees in some areas, lenders attorney’s fees in some areas, documentation fees, FedEx fees…), property taxes, insurance to cover the home and the construction effort, mileage and fuel for your car, taxes on the gain at standard income rates (as mentioned here only), and finally… wait for it… wait for it… your time.

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The complete costs of house flipping

chris

Tim Hawkins