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Returning Member
posted Jun 1, 2019 10:27:15 AM

Does the purchase price of a house that you flipped get reported as inventory under cost of goods sold?

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1 Best answer
Expert Alumni
Jun 1, 2019 10:27:17 AM

Yes, when you flip houses, your activity is reported on Schedule C and the purchase price of a house plus all improvements you paid is reported as Purchases (or Inventory if the house was bought in a previous year) under Costs of Goods sold.

1 Replies
Expert Alumni
Jun 1, 2019 10:27:17 AM

Yes, when you flip houses, your activity is reported on Schedule C and the purchase price of a house plus all improvements you paid is reported as Purchases (or Inventory if the house was bought in a previous year) under Costs of Goods sold.