Tax Base

I went to my first auction today.? 5 properties sold by 1 Trustee.? Three buyers there plus me.? Very interesting to see it live.
I was just following up on a property I first identified?on Foreclosure Radar.? My estimated value based on drive by $750,000.? Outstanding Loan Amount $688,323.? Opening Bid $250,000.? I was just watching and learning today and had done no title investigation and had no funds with me but WOW.
So my question is if I had purchased at auction for $250,000.01 would this become my property tax basis?
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Thanks again.

Exactly right. Plus if you start to flip regularly you are considered a dealer, and your profits are taxed as income rather than capital gains even if you hold for more than a year. If your strategy includes flipping some properties and holding others be sure to work VERY closely with your tax accountant to separate the two types so that you get the benefit of the lower capital gains rate on the properties you intend to hold.