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kickinbonez
New Member

I purchased and remodeled a home in idaho, and sold it for a profit. How do i claim this income?

Which form do i use?  Do i have to have a name for a business?
3 Replies
ColeenD3
Expert Alumni

I purchased and remodeled a home in idaho, and sold it for a profit. How do i claim this income?

Please see this answer from DS30.

 

If you are in the business of flipping houses, you will report all the income and sales information on a Schedule C as business income from self-employment.

You would want to upgrade to TurboTax Home and Business and you would report all your business income/expense under the "Business" tab (continue)>I'll choose what I work on"> Business Income and Expenses > Profit or Loss from Business > start or update. Let TurboTax guide you in entering all of your business information. You will eventually get to a screen titled "Your () Business.

 

If you are not in the business of flipping houses, you would report this as the sale of a capital asset because you bought the home for investment purposes. You will add the remodeling costs to the basis to determine your overall gain or loss. You may need to upgrade to TurboTax Premier to report this capital asset sale.

 

Click this link for further information about reporting the sale of a capital asset

 

  • To enter this transaction in TurboTax, log into your tax return and type "investment income (gains and losses)" in the search bar then select "jump to investment income (gains and losses)". TurboTax will guide you in entering this information
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kickinbonez
New Member

I purchased and remodeled a home in idaho, and sold it for a profit. How do i claim this income?

I am in the business of buying and flipping houses.  Turbo Tax currently has me in self employed package and i am having trouble figuring out how to up grade to business and home.  Seems like an easy thing to do, but it isn't giving me the option.  Probably because i have already started putting numbers in.  How do i upgrade to Business and Home

MaryK1101
Expert Alumni

I purchased and remodeled a home in idaho, and sold it for a profit. How do i claim this income?

TurboTax Self-Employed is the same as the TurboTax Home & Business- the Home and Business is just the desktop version (vs. online).  You will enter as Self-employment income and expenses.  You will have to enter under :Self-employment income and expenses".

 

The house itself is not treated as a capital asset for tax purposes. Homes purchased for flipping are treated as inventory of the taxpayer instead of capital gain property. 

 

@kickinbonez

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