No, you don't have to file, yes you can wait until sold and I would claim if sole proprietor. Here are the answers explained:
.Everything you spend on the flip goes into the basis of the house for when you sell. Your LLC/ or you, may want to report the things that don't go into the basis, like property tax. If you are a sole proprietor, your business tax is on sch C and is a part of your return. If you have more people involved, the answers can change. You would not want to report all of the interest, if you have partners that should also be carrying the tax burden.
The IRS will match up the EIN on the 1099-int. If they don't see it, they will bill. If it is your social, no problem. A long way around would be to make it nominee to you and then you report it. If you are sole proprietor, you can also just claim it. If the IRS sends a letter asking, tell them you put it on your taxes and show them. The bottom line is to prove it was taxed.
If you hold the property for one year or longer, it is a long term investment, you avoid the dealer terminology and qualify for capital gains tax rate instead of being taxed as ordinary business income on sch C.
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