Level 3

Where to report profit of selling a house?

Forum|Forum|6 years ago
March 14, 2020
1 reply
14 views

I have a client who is real state agent. In 2019, he purchased a house, did some remodeling and then sold it for some profit. This house was not his main residence or second home. It was purchased solely to make some profits. Do I have to report this house on Schedule C? or Schedule D?

If he was not a real estate agent, where could I have reported this house?

I appreciate your responses.

Thank you,

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

Is this "one and done" or does he plan to purchase another house and continue flipping?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

A

AzadiAuthor

Level 3

I think he is planning to buy and sell more. He does it for profit. He buys the house, remodels it and sell it. However, in 2019, he only purchased one house, and then sold it.

BobKamman

Level 15

IRS doesn't have a policy of allowing a free bite of the Schedule D appetizer before moving on to the Schedule C dinner. If his story is that he really considered it an investment opportunity and only decided later to make it a business, that's fine. If you want to coach him to say something else, remember what Shakespeare didn't say (it was Walter Scott)

Oh what a tangled web we weave. When first we practice to deceive.

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