I fix and flip houses in my LLC. Do I classify the properties as a nonresidential real estate? The other classifications does not seem to match.

[MinhT · Accepted solution]

If you buy houses to flip, your income and expenses must be reported on Schedule C as flipping houses is considered as a business by the IRS. The houses you buy are classified as Purchases and houses remaining unsold at year end are inventory.

[myflippingfamily]

how do you differentiate when there's 15 houses?   i did this and the IRS added the 1099S that the title company sent for individual houses that were grouped together on my schedule C, now i'm fighting them and having to show them my numbers are in there.   So essentially, I am getting hit with a $377k bill from 2016.  this is not accurate.  So now I'm trying to figure out how to fix the stuff i was lead to do on my schedule C.

[Critter]

@myflippingfamily 

You have a situation that you really need to seek local professional assistance to fix your mess ... just like you were told in your original post.  

[myflippingfamily]

i was not the original poster.. but that was extremely helpful.  i dont have time to wait on a cpa to fix it.. bc This was how the CPA actually said to do it, but the title company reported TOTAL distributions which is NOT my GROSS proceeds.  There's loan payoffs.. so i need to find a way just to make what was reported match. 

[myflippingfamily]

unless i commented first here and you are referring to something  i subsequently posted but have not seen the answers to at this time.  i work all day in the field. ... but your reading skills could be improved if you look to see who actually posted this thread.  wasn't me..