Real Estate Investing 101 – Capital Gains & Moving Homes

Flipping houses is a great way to increase your current income. Moving house can be done in less than a week if you know what you’re doing. This makes the earning potential completely limitless. If you put the time and effort into it, you could literally flip 52 or more houses a year. Many investors set out to supplement their full-time job income and ended up giving up their nine-to-five careers and making their hobby their main source of income.

Any time you supplement your income with any form of investment, you should carefully monitor yourself. Once you reach a certain cash flow from investments, you’ll need to figure your capital gains on your taxes. While this won’t be something most investors will have to deal with personally because they have accountants preparing their taxes for them, the first-time home-changer usually doesn’t think about capital gains. If you forget to report the investment, you could be in trouble.

If you’re going to be serious about buying and selling homes, be sure to take the time to talk to someone about capital gains. It is better to be prepared than to be surprised. If you’re not ready to get an accountant yet, take the time and learn everything you need to know about capital gains. The more you know, the less likely you are to make a mistake that could derail all of your progress. Flipping houses is an exciting experience and you should take the time to enjoy every moment. Don’t let worry about taxes keep you from playing, there are people who will work with you to help make sure all your finances are in order.