Don’t Flip Out, Tax Implications of House Flipping FLEXCAST

Overview

You have seen house flipping shows on television, if not, you have probably heard of people flipping homes for a profit. But what you have not seen discussed on these TV shows or at the local coffee shop, is what are the tax implications of flipping a dwelling. Where do the transactions go? Will it be Schedule C, Schedule E, Schedule B, Form 8949 and Schedule D, or a combination of these forms? Will expenses and renovations be capitalized or expensed in the current year? What was your client’s intent upon purchasing the property? Is your client an investor or dealer? Can you utilize IRC Section 1031, Like-kind exchange, related to the flipped home? This course will examine these questions, giving professionals the knowledge to appropriately account for house flipping’s unique tax implications.

Highlights

The tax implications of flipping a dwelling.

Prerequisites

None.

Designed For

CPAs and tax professionals.

Objectives

Explore what is a trade or business under IRC Section 162? Examine distinction between a dealer and an investor. Analysis of case law. Investigate what Forms do we use for the flipping transactions. Examine if the number of transactions each year makes a difference on how sale is treated. Assess nature and intent of taxpayer. Review other factors that affect related tax implications.

Preparation

None.

Notice

This is a FlexCast (no exam required) and may be viewed only Monday - Saturday, 5am - 5pm PT. You may take up to one year from the date of purchase to complete the course. Pause your FlexCast and resume at a convenient day during the hours above. Partial credit for 2+ credit courses: If you are unable to complete the course in one sitting, partial credit can be awarded (minimum of one credit). To earn the remaining credits, you must return later and start the course from the beginning. Use chat to ask questions of a subject matter expert during the program.