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Stew455
New Member

How do i notate capital gains on a house remodel and flip where my investment was tied up for over 2 years

I got a 1099-int that shows my profit, but since the investment was tied up so long I thought I was able to report the profit as capital gains
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1 Best answer

Accepted Solutions
MichaelDC
New Member

How do i notate capital gains on a house remodel and flip where my investment was tied up for over 2 years

It's hard to tell what the issue is without knowing more about your return. A 1099-INT reports interest income, so this answer will address how to handle the sale of an investment house:

To enter this transaction in TurboTax, log into your tax return  (for TurboTax Online sign-in, click Here ) and click on "Take me to my 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 sale in TurboTax Online or Desktop, please follow these steps:

1.      Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)

2.      Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)

3.      Next click on “I’ll choose what I work on” (jump to full list)

4.      Scroll down the screen until to come to the section “Investment Income”

5.      Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section)

6.      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)

7.      Since you did not receive a 1099-B, answer “no” to the 1099-B question

8.      Choose type of investment you sold - select Second Home

Some basic information:

1.      Description –  Usually the address of the property sold

2.      Sales Proceeds – Net proceeds from the sale  (select box to input selling expenses not reported on 1099-S)

3.      Date Sold – Date you sold the property

10.   Tell us how you acquired the property - purchased

11.   Any business or rental use? - select personal use only (please note that capital losses are not allowed on personal use property) If you make another selection, you may need to report this sale under sale of business

Some Basis information  

1.      Date Acquired

2.      Original cost basis

3.      Cost of improvements

 

View solution in original post

3 Replies
MichaelDC
New Member

How do i notate capital gains on a house remodel and flip where my investment was tied up for over 2 years

It's hard to tell what the issue is without knowing more about your return. A 1099-INT reports interest income, so this answer will address how to handle the sale of an investment house:

To enter this transaction in TurboTax, log into your tax return  (for TurboTax Online sign-in, click Here ) and click on "Take me to my 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 sale in TurboTax Online or Desktop, please follow these steps:

1.      Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)

2.      Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)

3.      Next click on “I’ll choose what I work on” (jump to full list)

4.      Scroll down the screen until to come to the section “Investment Income”

5.      Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section)

6.      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)

7.      Since you did not receive a 1099-B, answer “no” to the 1099-B question

8.      Choose type of investment you sold - select Second Home

Some basic information:

1.      Description –  Usually the address of the property sold

2.      Sales Proceeds – Net proceeds from the sale  (select box to input selling expenses not reported on 1099-S)

3.      Date Sold – Date you sold the property

10.   Tell us how you acquired the property - purchased

11.   Any business or rental use? - select personal use only (please note that capital losses are not allowed on personal use property) If you make another selection, you may need to report this sale under sale of business

Some Basis information  

1.      Date Acquired

2.      Original cost basis

3.      Cost of improvements

 

Stew455
New Member

How do i notate capital gains on a house remodel and flip where my investment was tied up for over 2 years

I think the person who prepared the 1099-INT didn't take into account the duration the investment was held.....getting a new 1099 prepared
MichaelDC
New Member

How do i notate capital gains on a house remodel and flip where my investment was tied up for over 2 years

Excellent! Good Luck!

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