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Old 12-29-2010, 03:01 PM
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How does the IRS treat the gains from Flipping off mulitiple foreclosure properties bought and sold within a short period of time?

The tax court has ruled that any gains that result from from actively flipping foreclosure properties that are bought and sold within a short perid of time, (i.e. less than 6 months) are deemed to be ordinary income and thus cannot be used to offset any capital losses!

The tax court "identified these taxpayers as dealers in real estate."

Source: Tax Court Memo-2010-261

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