If your building's flip tax is calculated on profit rather than gross sale price, you can reduce the taxable amount by documenting your original purchase price, closing costs at acquisition, and all capital improvements made during ownership. Every dollar of documented improvement reduces your calculated profit and lowers your flip tax. Keep contractor invoices, permit records, and board alteration agreement approvals as supporting evidence.
From the seller playbook: Flip Tax Structures in Co-ops
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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