TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

Solved

How to report a house flip

Forum|Forum|3 years ago
December 29, 2022
1 reply
0 views

I tried to flip one house this year and ended up losing money on it (more than 3k). How can I go about reporting this loss?

Do I,

1. Complete a schedule C? Or

2. Report this as an "Investment Income/Loss" which is limited by the 3k investment loss limit?

I think reporting the loss on schedule C might provide me with the most tax benefit right away, which would be helpful at the moment, but I'm not sure if this is technically correct.

Best answer by DoninGA

Buying and selling one investment property with no intent to continue this practice does Not constitute having a business for buying and selling properties.

You report the sale of the property in the Wages & Income section of the TurboTax program under Investment Income.

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Under Investment Income
On Stocks, Mutual Funds, Bonds, Other, click the start or update button

Or enter investment sales in the Search box located in the upper right of the program screen. Click on Jump to investment sales

Employee

Buying and selling one investment property with no intent to continue this practice does Not constitute having a business for buying and selling properties.

You report the sale of the property in the Wages & Income section of the TurboTax program under Investment Income.

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Under Investment Income
On Stocks, Mutual Funds, Bonds, Other, click the start or update button

Or enter investment sales in the Search box located in the upper right of the program screen. Click on Jump to investment sales

DitiAuthor

and what if the intent was to try again in 2023 with another flip? Does that change the tax scenario?

Employee

@Diti wrote:

and what if the intent was to try again in 2023 with another flip? Does that change the tax scenario?

Go to the following IRS website for the 9 factors which you can use to determine if this is a business - https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses