I have a very similar question, Only we have an S corporation and file an 1120S tax return. Our business is solely raw land. We purchase and sell for profit. My partner and I are wondering if we should use COGS for purchase of land. The accountant my partner used previously prepared our taxes but listed all of those costs in “other expenses” instead of COGS. I feel like this is incorrect? Or does it matter? Also, I am curious about passive income? We are real estate agents full time and this is a side gig. Do we qualify for this to be passive income, or no?
