Capital Gains and Losses

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What is better to have to pay less taxes. Capital gains or…

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What is better to have...
What is better to have to pay less taxes. Capital gains or income tax? I flip property. And ultimately I can put the properties under my parents name and have them pay me as the contractor and they break even on the capital gains. I wanted to know is it better to do this or just take the capital gains and claim losses normally. I just don't want to pay 35% of capital gains or even more if I make 200k in profit.
Submitted: 4 months ago.Category: Capital Gains and Losses
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Answered in 23 minutes by:
3/16/2018
Tax Expert: ABC Accounting Group, Business Consultant/CPA replied 4 months ago
ABC Accounting Group
ABC Accounting Group, Business Consultant/CPA
Category: Capital Gains and Losses
Satisfied Customers: 889
Experience: Accounting Manager
Verified

Hi. Great Question. If they pay you, you actually will be paying an additional 15% for social security tax, being a sole proprietor. You could start an S-Corp and net income flows through to your 1040.

Let me know if this helps and if you have any questions. Thank you.

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Customer reply replied 4 months ago
Ok so have them buy the property pay me the construction fees to my s corp. then have them break even when they report their taxes. So I will have them pay me all their profits that they would have.
Tax Expert: ABC Accounting Group, Business Consultant/CPA replied 4 months ago
They would have to buy it with their $'s though
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Customer reply replied 4 months ago
Is this the best way to avoid capital gains on flip properties? Or what would you suggest?
Tax Expert: ABC Accounting Group, Business Consultant/CPA replied 4 months ago

I would do some type of S-Corp. If the S-Corp was owned by your parents- this would save on taxes, if their tax rate is lower than yours.

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