Sale of Spec Home

[RLymanC]

Client is a building contractor. His partially completed spec house.More to follow

[solomon]

The ending inventory at 2006 becomes the beginning inventory on 2007 which should carry the beginning 2007 inventory down to the Cost of Goods Sold which transfers to Page 1 of Sch C as COGS. He must have sold it for 280K.

RL - you changed your first post so I will recant the above numbers.

[RLymanC]

Solomon

Thanks for your reply,,,,I'll add all additional costs to materials purchased and add the additional labor cost, then enter total sale price plus all other income to Page 1 line 1.

I was thinking wrong on form 4797.

Thanks again.