Don’t Flip out, Tax Implications of House Flipping

This webinar is part of Tax Practice Pro's "Taxation of Real Estate Series"

We have several exciting webinars offering more than 23 IRS CE/23 NASBA CPE credits throughout the month. Use the link below to see our full line-up and new special punch pass pricing.

You have 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?

Learning Objectives

- Explore what is a Trade or Business under IRC 162
- Examine distinction between a dealer and an investor
- Analysis of case law
- Investigate what Forms do we use for the flipping transactions
- Examine if the number of transactions each year makes a difference on how sale is
treated
- Assess nature and intent of taxpayer
- Review other factors that affect related tax implications

2 IRS CE/2 NASBA CPE*

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*Self-Study recording not available for NASBA CPE credit.