Please advice to minimum my tax

[Mikay29]

Hi guys,

Hope you guys can please advice me in this situation.
I bought my first home in Sep 2018 for 600k to live there with some renovate then I sold it in July 2019 for 680k.
I bought a second house to live in August 2019 for 650k and just sold it for 720k.
I'm looking for another house this month, budget in $750.
I live in all houses before sold it with some renovate. My question is:

1) Do I have to pay for tax if I buy more expensive house?
2) How can I minimum the tax please?
3) If I sell the next house, do I have to pay tax?

Appreciate for your advice.

[Anthonyacat]

Hi guys,

Hope you guys can please advice me in this situation.
I bought my first home in Sep 2018 for 600k to live there with some renovate then I sold it in July 2019 for 680k.
I bought a second house to live in August 2019 for 650k and just sold it for 720k.
I'm looking for another house this month, budget in $750.
I live in all houses before sold it with some renovate. My question is:

1) Do I have to pay for tax if I buy more expensive house?
2) How can I minimum the tax please?
3) If I sell the next house, do I have to pay tax?

Appreciate for your advice.

You need specific tax advice from an accountant. Preferably a property accountant. You will need to pay for this advice. It's worth it.

But the short answer is that if you keep doing this, at some point it will be a very clear and obvious pattern, and you'll be required to pay taxes on your profits. The exact point this happens isn't clear, but I'd personally argue that it was the second house and you should already have paid tax on the one you just sold. It looks to me like it was pretty obvious your intention was to buy renovate and sell at a profit.
The fact that you're even asking this, indicates strongly you're intending on doing the same thing again.

[PC]

Just say you are from Hollywood and it's a potential film set.
IRD will probably pay you money!

[Rosco]

I second that you should get some expert advice.

Also search brightline rules, as this will give you some information on this form of taxing land transactions. NOTE there are other ways you can be taxed, but if you sell 3 personal homes within 2 years, the brightline rules will definitely get you.

Ross