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@EminC wrote:

Client (two member LLC) purchased a house 2021 and sold it for profit 2021.

Do you report the sale proceeds as Gross Receipts and deduct expenses as COGS? and where do you enter the other expenses like improvements and betterments of the house, as well as other expenses.

Probably.  If they took the time to form an LLC there's probably a trade or business (as opposed to an investment) and that business is probably flipping houses on a regular and continuous basis with the intent of making a profit.

Improvements would be part of COGS.  Probably most other expenses would also but it depends on the nature of the expense.

Edit: That Jeff guy swooped in like a ninja and beat me by a couple minutes.  So yeah, what he said.