Hi there, I have a complicated question. I formed an LLC and did a 1065 last year with k-1's to my partners. I elected to be an S corp, I don't know why and now I've complicated my life...lol. We do new builds and so I'm reporting the cost to build as expenses, and then proceeds on the other side as short term or long term cap gains using the cost of the land as a cost basis. Or is the property sold treated as inventory? And if so, how do I do that? I have 16 more lots that are also part of partnership and we are going to be continuing to build until we've sold all of them.
Is that correct?
Also, another quick question that I think I might already know the answer, can I go ahead and file it as a 1065? Or do I now have to do it as a 1120S. Tks for your help.
