I just want verification regarding RE brokers/sales people who earn commissions and also buy, hold, and sale property. Is it presumed that they should consider "homes" bought and resold as "inventory" with COGS status and should go on a schedule C, and not 4797?
I am preparing returns for TY 2005, 2006, & 2007. TY 2005 shows commissions and sales of property, which seem to be two homes that were bought, improved and then sold. I am not thinking investment because they appear to be in the business of buying and selling homes via their RE brokerage status.
Please provide insight, as sometimes, there is not an exact answer when looking at the previous threads on the message board.
Thank you for your help.
I am preparing returns for TY 2005, 2006, & 2007. TY 2005 shows commissions and sales of property, which seem to be two homes that were bought, improved and then sold. I am not thinking investment because they appear to be in the business of buying and selling homes via their RE brokerage status.
Please provide insight, as sometimes, there is not an exact answer when looking at the previous threads on the message board.
Thank you for your help.
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