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Discussion:Gain/Loss on Flipped Condo
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Discussion Forum Index --> Basic Tax Questions --> Gain/Loss on Flipped Condo
Discussion Forum Index --> Tax Questions --> Gain/Loss on Flipped Condo
| 18 March 2014 | |
| Taxpayer, a semi-retired/part-time real estate agent, purchased a condo to flip in spring 2012 and later sold it in fall 2013. The TP is not in the business of flipping, incurred <$100 of repairs, made no election to capital carrying costs, and does not itemize. Can the property taxes and utilities paid in 2012 & 2013 be used to calculate the gain/loss on sale? Are the property taxes and utilities non-deductible? | |
| 18 March 2014 | |
| Then you should take the property taxes on Schedule A (investment property) and they should also be included on Form 4952 as investment expenses. The utilities and HOA dues and Repairs should be 2% deductions (investment expenses) and should also be shown on Form 4952.
So, I think in your case, since the guy can't itemize, ND all the way around. Sec 266 is out since we're dealing with already-improved property. | |
| 18 March 2014 | |
| And thank you, for confirming your gratitude for me confirming. | |
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