News & Resources

Firm News

Edward J. Hannon quoted in article “What are the Top Tax Concerns When Flipping a Home in the U.S.?”

Mansion Global

Below is an excerpt:

Real property taxes are based on the property’s market value at the time it is purchased. A federal capital gains tax, meanwhile, is levied on the net profit at the time of sale. How long the property is held before it is resold usually determines the amount of the tax. 

“In general terms, property held for investment less than 12 months will be taxed as a ‘short-term’ capital gain,” said Edward J. Hannon, partner at Quarles & Brady law firm in Chicago. "The rate on short-term capital gain is the same rate that applies to ordinary income (i.e., regular tax rates)."