MaryK4
Expert Alumni

Business & farm

If he flips houses they are considered inventory rather than assets so he can enter all the income on the Schedule C as Business Income not reported on a 1099-NEC.  He will NOT enter in the personal section.  Any expenses will go here as well- and he can enter the purchases prices of the houses to decrease his taxable income.  In general, flippers cannot use capital gains rates.

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