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WHERE DO I REPORT THE GAIN FROM FLIPPING A HOUSE THAT WAS A CAPITAL ASSET?

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Level 15

Probably on Schedule C. Remember that YOU used the word FLIPPING. 


ex-AllStar

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Yes if they are in the business of flipping.  But is it is only one instance is not considered to a be an investment in a capital asset and reported as such?
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Level 15

Probably on Schedule C. Remember that YOU used the word FLIPPING. 


ex-AllStar

View solution in original post

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Level 15

YOU need to determine what the intent was....and using "flipping" and capital asset to describe the same transaction is confusing.

ONE time, with no intent to do it again = probably a capital gain/Sch D

One time, with the intent to do it again & again = Sch C.

Does your client have a contractors license?  Does your client have a full-time job?

Former Chump... umm.... AllStar.
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