• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Real Estate Rental reported on SCH C

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

P

Plazatax

Junior Member
What is the name of your state? California

I have a rental that I originally purchased to “flip” I could not sell it and while is sitting on the market I am leasing it. I would like to report the expenses I have (mortgage, taxes, maintenance, etc…) on a schedule C. My problem is that when it sells I do not want to pay SE tax on the gain. Can I report the property as inventory at this time and latter on “withdraw” the property from inventory and convert it to personal or rental? And if so how do I document?
 


LdiJ

LdiJ

Senior Member
Plazatax said:
What is the name of your state? California

I have a rental that I originally purchased to “flip” I could not sell it and while is sitting on the market I am leasing it. I would like to report the expenses I have (mortgage, taxes, maintenance, etc…) on a schedule C. My problem is that when it sells I do not want to pay SE tax on the gain. Can I report the property as inventory at this time and latter on “withdraw” the property from inventory and convert it to personal or rental? And if so how do I document?
Click to expand...
You can get the same result by reporting it on schedule E, and that would not cause you to have SE tax.
 
FlyingRon

FlyingRon

Senior Member
And the schedule E is where the IRS expects you to put it. Lots of info at the IRS site. Start here:


http://www.irs.gov/taxtopics/tc414.html
 
You must log in or register to reply here.

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top