1065 real estate asset sale- what is the best way to enter a sale of a real estate asset. It was being constructed and had never been entered as a rental property.

[purple414]

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.

[abctax55 · Accepted solution]

Sounds like sale of inventory = ordinary income.

[purple414]

so do you think it should be entered as section 1245 business property?

[TaxMonkey]

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]

Same house?   And the same answers still apply:

https://accountants-community.intuit.com/questions/1750764-how-would-you-enter-an-investment-real-es...