I have just completed my first rehab project where I made 30,000 and my mentor has tried to explain to me the short term capital gain tax ramifications that I will receive as a result of this. It is all clear as mud to me because I have never done my own taxes yet. (I am only 22) He said I could face up to 50% taxation on the profit, which is unbelievable to me. He also presented the idea of a 1031 exchange but I do not have another deal lined up just yet. Do you seasoned rehabbers have any way around this or any solutions to offer?