Tax Implications of House Flipping
Date: Monday, May 5, 2025
Instructor: A.J. Reynolds
| Begin Time: |
9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time |
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
|
NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
You have likely 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 implication of Flipping a dwelling.
In general, flipping is a type of real estate investment strategy in which an investor purchases a property at a low price not to use, but with the intention of quickly selling it for a profit.
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 or 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?
Topics Covered
- Examination the distinction between a dealer (flipper) and an investor
- Analysis of how costs are handled
- Define Capital Assets
- Explore what forms are used under each scenario
- How to treat sales of flipped properties
- How are costs for properties treated
- How are the profits taxed
Learning Objectives
- Distinguish what is a Trade or Business under § 162
- Understand Case Law
- Assess nature and intent of taxpayer
- Recognize distinction between a dealer and an investor
- Know what Forms do we use for flipping transactions
Level
Basic
Instructional Method
Group: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
