purple414
Level 2
12-06-2019
09:05 PM
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Client is a 1065. They buy real estate and they do construction and then flips them. The properties were never used as rental properties, just purchased, built, and then sold. What is the best way to enter these into proseries, so they flow to the proper schedule to show gain/loss from real estate sale.
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abctax55
Level 15
12-06-2019
09:05 PM
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Sounds like sale of inventory = ordinary income.
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purple414
Level 2
12-06-2019
09:05 PM
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so do you think it should be entered as section 1245 business property?
TaxMonkey
Level 8
12-06-2019
09:05 PM
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entered where? These would not be shown on a 4797, The income is reported as gross income on the 1065, capitalized building costs would be COGSs.
abctax55
Level 15
12-06-2019
09:05 PM
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Same house? And the same answers still apply:
HumanKind... Be Both
