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Updated over 1 year ago,
Can a land flipper or homebuilder spend all profits on land to be held as inventory?
I'm new to business and seeking some clarity before consulting an advisor. Could a land flipping business or homebuilder (sole proprietor LLC) spend all profits on land to be held as inventory? Any and all advice is greatly appreciated.
$100,000 company profit
$(40,000) company expenses
$(60,000) new inventory (land for resale or development )
$0.00 profit