I have a client that is planning to flip houses. My thoughts are that he purchases the houses, keep up with the expenses to repair and refurbish to increase the basis. Does anyone have other suggestions. We do know there will be capital gains involved. Would you enter this information on Schedule C as a business called flipping houses?
No, there will not be capital gains involved. There may be ordinary income, or ordinary loss. Keep track of the cost of inventory, report its sale when it happens.
