Magcep
New Member

Deductions & credits

I am in a similar situation. We bought land 2024, we are building in 2025 and probably selling 2026. If we pay contractors and send a 1099 how do we report this in the 2025 income tax if we are not receiving any income for that year? Wouldn’t this give us a negative income/loss? And then in the 2026 income tax what do we report if the house sold?