House flipper - Partnership

Forum|Forum|3 years ago
April 19, 2023
1 reply
11 views

The client is in a 25% / 75% partnership with a co-worker and they bought their first house to flip in 2022.

House sold in 2023. I understand IRS rules regarding house flipping (cap costs increase basis, non cap expenses taken in year incurred, etc), but I just found out the LLC they formed wasn't valid until 2023. Is there a way to file the 2022 loss on a Sch C? If so, how do you show the distribution of loss?

Thanks!

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Best answer by Just-Lisa-Now-

If the house hasnt been sold yet, the house and all the improvements sit as inventory until it is sold. So you may not be looking at much, if any loss for the year of purchase.

Who's name/TaxID number is on the property if there is no partnership yet?

Just-Lisa-Now-

Answer

Intuit Community Champion

If the house hasnt been sold yet, the house and all the improvements sit as inventory until it is sold. So you may not be looking at much, if any loss for the year of purchase.

Who's name/TaxID number is on the property if there is no partnership yet?

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