Hello Community!
My new client purchases properties with another friend, renovates them and sells them. They each share 50% of the expenses and proceeds.
I recommended that they should do a Partnership Return but they are telling me otherwise.
Since this can be categorized as a Flipping House business- a schedule C can be done.
1-Is it possible to just do a Schedule C for each of their share?
2- Are we able to split the cost basis of each property and include in each of their Schedule C?
3- Or Just categorize this has a short term capital gains? ( but of course this will be less tax beneficial).
Your input is greatly appreciated!!
My new client purchases properties with another friend, renovates them and sells them. They each share 50% of the expenses and proceeds.
I recommended that they should do a Partnership Return but they are telling me otherwise.
Since this can be categorized as a Flipping House business- a schedule C can be done.
1-Is it possible to just do a Schedule C for each of their share?
2- Are we able to split the cost basis of each property and include in each of their Schedule C?
3- Or Just categorize this has a short term capital gains? ( but of course this will be less tax beneficial).
Your input is greatly appreciated!!
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