Kristina K wrote: "If you are a real estate dealer, then you will report the "flip" on Schedule C. Sales price will be your gross income (general income in TurboTax) and basis will be your cost of goods sold." Can someone please provide more help regarding how to complete the cost of goods sold section on Schedule C? I bought the property in September 2018, had expenses and renovation costs in both 2018 and 2019, and sold the property in July 2019. Part III, Cost of Good Sold on Schedule C is confusing...it asks for "Inventory at beginning of year" and "Purchases" and "Inventory at end of year" and also things like "Materials and supplies" but there is also a "supplies" category in Part II of Schedule C (Expenses section).
Please help! I definitely want to use Schedule C to report this flip since I had a loss from it and it will offset other income I had as a realtor...which I assume will give me the leeway to use Schedule C for the flip since I'm arguably a "dealer" of sorts already plus I plan to do more flips (but at a profit next time--this was an unusual circumstance that generated a loss). I just need to know how to complete the Cost of Goods Sold section...thank you any flippers or tax pros out there who can answer this!!
