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meeks_b
March 20, 2025
Question

I have rental properties so i use the turbo tax for rentals. I just purchased an investment property that i plan to flip, where do i add that??

  • March 20, 2025
  • 1 reply
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    1 reply

    AmyC
    AmyC
    Employee
    March 20, 2025

    You purchased inventory for your business. If you didn't know you have a business and you are the sole proprietor, you have a Sch C. 

     

    Things to know:

    • Generally, a flip is a short term holding
    • It is taxed as ordinary income and because it is from inventory for a business
    •  it is subject to self-employment tax on the gains, What is the self-employment tax?
    • You will deduct the cost of the inventory when sold along with the expenses to remodel

     

    A flip is not a rental so good job asking. 

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