If you have owned the house for 12 months or less, you will be taxed at ordinary rates on the gain. Capital gain rates only apply if you have owned the property over 12 months.
Additionally, if this is your full time occupation, you are considered a dealer and not eligible for the capital gain rate, as the houses are your inventory.
Any capital expenditures in improving the house are added to your cost basis, reducing your gain.
Hope this helps.
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