Flipping houses is a great way to add to your current income. House flipping can be done in less than a week if you know what you are doing. This makes the earning potential completely limitless. If you put the time and the effort into it you could literally flip 52 or more houses a year. A lot of investors set out to supplement the income from their full time job and end up giving up their nine to five careers and making their flipping hobby their primary source of income.
Anytime that you supplement your income with any form of investing you have to carefully monitor yourself. Once you reach a certain cash flow from investments you than have to figure your capital gains into your taxes. While this will not be something that most investors have to deal with personally because they have accountants that do their taxes for them, the first time house flipper usually does not think about the capital gains. If you neglect to report the investment you could be heading for trouble.
If you are going to take house flipping seriously, be sure to take the time to talk to someone about capital gains. It is better to be prepared than it is to be surprised. If you are not ready to get an accountant just yet, take the time and learn all that you need to 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 of it. Do not let the worry of taxes keep you from playing the game there are people that will work with you to help you make sure all of your finances are in order.