Sometimes, all it takes is a little elbow grease to turn a drab house into a neighborhood gem. New siding, a coat of paint, interior updates, smart landscaping—all these changes have transformative power. Many people have the know-how to turn a vacant or run-down building into a bustling family home, but they’re turned off from taking on the project because of financial concerns. However, there is a way to flip houses and earn tax-free profits!
Handy people who are willing and able to purchase and resell a “fixer-upper” home can receive up to $250,000 in tax-free profits. Married couples could qualify to earn up to $500,000. (Certain residency and resale requirements apply.)
Before you commit to any big plans, call the team at Taxation Solutions, Inc. We have more than 40 years of experience interpreting tax codes in these situations. When you consult with us, we’ll break down what will be expected if you are planning to earn a tax-free income by fixing houses for eventual resale.
Choosing the Right Project
In addition to doling out tax advice, our experts will help you determine which houses are the best candidates for this type of tax break. Location is key, and it is also important for the home to have the “right things wrong.” In other words, the home must be in need of improvements that are fairly minor, so the costs of repair are not greater than the potential income. Examples of “right things wrong” include outdated bathroom and kitchen fixtures, old cabinets, and landscaping issues.
Reviving older homes can be an exciting personal project, as well as a great benefit to the community. Contact us today to learn more about earning money by giving neglected buildings a second chance at life!