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?
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?