I am trying to enter sale of business property (house), that was held for 2 years. The sale shows as a ordinary income instead of capital gain.

[dkh]

Where are you entering this information? Schedule D ? Is it a rental property, if yes, sell it through the Asset Entry Worksheet in Schedule E.

Need details to understand how to help

[techbiz1861]

This is a house was rehabbed and sold after 2 years of ownership.  It wasn't rental.

[BobKamman]

So maybe it belongs on Schedule C.  None of the expenses were deducted there in the last two years?  

[techbiz1861]

All the deductions were done after the sale.  

[qbteachmt]

"shows as a ordinary income instead of capital gain"

There's a difference in an Inventory Asset, used to generate a sale, and "business property" as an Asset used in the operation of the business.

A Capital gain, even if you are calling this an investment property, and a Flip, in the IRS terminology, are differentiated by the business purpose.

So, either this activity (the flip) was the business, and this was inventory held over a year end or two while being improved. Or, it is an unusual situation, maybe they bought it to fix and occupy or fix and rent (fixed asset) and then got an offer or otherwise circumstances changed, and they ended up selling it.

Because sales of inventory assets are Ordinary Income.

[BobKamman]

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support. 

[techbiz1861]

Thank You so much for an explanation. 

[techbiz1861]

I am on the correct site.  I wasn't sure where to enter the info using ProTax software.

It had to be on Sched D.

[dkh]

curious...... is  @techbiz1662  that started this post the same as @techbiz1861 that ended it ?

[qbteachmt]

"is  @techbiz1662  that started this post the same as @techbiz1861"

Hey, a war is a war is a war, I suppose...