Newbie Needs Tax Help

[Mike Bayer]

Hi everyone,

We bought our first property last november in 2023, and are getting ready to list it.  I purchased it under my own personal name on this first one, cause we were competing to get there quick and my EIN hadn't come in yet.

We do our own taxes but I have no clue what to put for this house purchase.  We still own the house now.  But how do we put this into our tax filing for last year?  

Any help would be much appreciated.

[Teri Feeney Styers]

I have flipped many houses. I am an S-Corp but that doesn't really matter in this scenario. For now you do nothing. Just keep all your financial records regarding the purchase, improvements, holding costs, etc. The year you sell the house (presumably 2024) you report ALL the profit and loss. Simple. This is "ordinary income" and you will show it on your personal tax return. Don't try to write off any expenses until you have an income to offset. Much cleaner. @Mike Bayer