properly filing taxes for a flipped house?
This is a two part question. In 2019 I purchased flipped one house. All my other properties are rentals I hold for multipe years. Since I only did 1, can I classify myself as an investor and not a dealer?
#2. If classified as a dealer, I should file on schedule C, however on Tax act there is nowhere to add the expenses other than a menu option to manually add all expenses in. There is however a form 4797 that seems much simpler, and the net profits show up on my overall return, however my schedule C still says $0 for everything, even though I linked the 4797 to it. Do I even need to do a 4797 if I am doing a schedule c?
I reached out to Tax Act for help but they are useless.
- A.J.Lv 74 weeks ago
Any sane person in your situation pays a tax accountant. Filing your own taxes is like a surgeon operating on himself.
You have a lot of paperwork if done properly, and you should have a business structure. Your gain on the flipped house is ordinary income.
Hire an accountant. You could end up owing thousands of dollars.