The underlying question is: are you a business or are you an investor. You said: "I have a schedule C set up in Turbo Tax in which I have been reporting income and expenses." That seems to indicate that you are a business. You will enter the sale amount $145,000 as income received and the $128,000 basis as "cost of goods sold" (COGS). The other expenses will be entered as business expenses. The profit will be taxed at ordinary income rates, not as a long term capital gain.
