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speedway121
March 21, 2021
Question

New Real estate Flipper with Schedule C - Am I at a benefit to using LOWER OF COST OR MARKET METHOD (LCM) or COST

  • March 21, 2021
  • 1 reply
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PLEASE - ONLY CPA's OR ACTUAL TAX EXPERTS. 

 

New to real estate flipping , I flipped a home in 2020. 

I have the option of choosing LCM or cost method on 2020 return. Must use it thereafter on all returns.

 

WHICH is best for real estate flippers? and why?

 

 

1 reply

M-MTax
M-MTax
March 21, 2021

If you are good at this or expect to be, you do not want to use LCM. That's for businesses that have old, stale, obsolete inventory......tons of writedowns. Use cost.

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