If you are in the business of flipping houses, you will report all the income and sales information on a Schedule C as business income from self-employment.
You would want to upgrade to TurboTax Home and Business and you would report all your business income/expense under the "Business" tab
(continue)>I'll choose what I work on"> Business Income and Expenses
> Profit or Loss from Business > start or update. Let TurboTax guide you
in entering all of your business information. You will eventually get to a
screen titled "Your () Business.
If you are not in the business of flipping houses, you would report this as the sale of a capital asset because you bought the home for investment purposes. You will add the remodeling costs to the basis to determine your overall gain or loss. You may need to upgrade to TurboTax Premier to report this capital asset sale.
Click this link for further information about reporting
the sale of a capital asset
- To enter this transaction in
TurboTax, log into your tax return and type "investment income (gains
and losses)" in the search bar then select "jump to investment
income (gains and losses)". TurboTax will guide you in entering this
information (see step 6 below)
Alternatively,
To enter this transaction in TurboTax Online or Desktop, please follow these
steps:
- Once
you are in your tax return, click on the “Federal Taxes” tab
("Personal" tab in TurboTax Home & Business)
- Next click on “Wages &
Income” ("Personal Income" in TurboTax Home & Business)
- Next click on “I’ll choose
what I work on” (jump to full list)
- Scroll down the screen until
to come to the section “Investment Income”
- Choose “Stocks, Mutual Funds,
Bonds, Other” and select “start’ (or “update” is you have already worked
on this section) (see Screenshot #1)
- The first screen will ask if
you sold any investments during the current tax year (This includes any
sale of real property held as an investment property so answer “yes” to
this question)
- Since you did not receive a
1099-B, answer “no” to the 1099-B question
- Select - everything else
- Some
basic information:
- Description
– Usually the address of the property sold
- Sales Proceeds – Net proceeds from
the sale
- Date Sold – Date you sold the
property
- Tell us how you acquired the
property - purchased
- Purchase information - This is where you will enter your cost plus the capital improvement costs.
- Enter the date acquired.
