Q. Do I need to complete a 1099 Misc?
A. No. Just make the adjustments on your own tax return.
In TurboTax (TT), you will be asked about expenses of sale. Enter it there to adjust your capital gain.
How you take the tax deduction depends on how you are reporting the gain; capital gain or business profit.* If a capital gain, enter again at itemized deductions to get the real estate tax deduction.
*For more info, in making that determination, see a similar question at: https://ttlc.intuit.com/questions/3399983-tax-issues-regarding-flipping-of-a-house
And references at:
https://www.hrblock.com/tax-center/income/real-estate/flipping-houses-taxes/
https://fitsmallbusiness.com/taxes-on-flipping-houses/ https://www.lendinghome.com/blog/how-to-maximize-house-flipping-tax-benefits/
