Thank you for your reply! Very helpful indeed.
A few more questions. I sold the flip in 2023 for $610k ($47k net profit). I will also need to add another $20k rehab costs and sellers fees paid in 2023.
Sales price: $610,000
Purchase Price: $500,000
Total materials/labor costs: $63,000 ($43k in 2022 taxes plus $20k in 2023 for combined total of $63k)
Net Profit: $47,000
How would I enter in 2023 in order to reflect my $47k net profit?
Should my 2023 numbers be as follows?
Beginning inventory: $543,000
Purchases: $0
Other Production-Related Costs: $20,000
Less Ending Inventory: $0
Total Cost of Goods Sold: $563,000
Where do I enter the $610,000 sales price?
