@myflippingfamily, you should have reported the gross sales prices from all of your 1099-S's as Gross Receipts or Income on your Schedule C. Then the purchase price and improvement costs should have been included as Cost of Goods Sold. Then your gross income would match what the IRS has, and your net profit would still be correctly reported. At this point, you'll have to show the IRS your calculations to demonstrate that you actually reported all of your income. It's never a good idea to report your net figures. But as a flipper in the business of flipping houses, it is correct that you report your income and expenses on Schedule C.
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