As a dealer, the purcase price of a property and all the repairs, renovation, and other expenses related to a property to be resold are accounted for as Cost of Goods (Inventory if unsold at year end).
When in 2022 you sell the property, the total Cost of goods sold is deducted from your sale proceeds to give a gross profit reported on your form 1065. The amounts added to Cost of Goods sold will lower your gross profit in the year you sell the property.
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