Real estate loss in 2013, could it be carried over to 2014?

[Eve W.]

My real estate wholesale business had a loss of over $8K in 2013 and I was/am not a RE professionals regards to IRS terms. I had profit in 2014 for wholesaling of over $15K. Could the 2013 loss be carried over to 2014 and offset some of the gains?

thanks

[Brandon Hall]

Eve W. As a wholesaler you would have been classified as a dealer for ax purposes, meaning your houses are inventory and you should have reported your income and expenses on schedule C.

Your schedule C $8k loss should have flowed through to your 1040 and decreased ultimately your taxable income.

You can carry forward your sched C losses of your 1040 income goes negative.

I think you should look at amending your 2013 return.