reporting sale of flips to irs

[Pat Opiola]

I bought a flip for 60k i sold it for 95k 5 months later the rehab and holding costs were 9k, where do i show the profit? on a schedule D? thanks, also My friend and I bought a property together, we rent it out, do we share the schedule E? or do we each file our own schedule E? thanks Pat

[David Beard]

It almost goes without saying to locate a good CPA (should automatically display when the word "tax" appears in a question), but bear in mind that many accountants have a broad clientele and can get watered down on their specific knowledge of REI tax strategies, as well as taking the easy path due to time constraints to research issues).

It is imperative that you educate yourself and raise these issues with your CPA. There are good books from NOLO and Lasser, among others.

Often missed: Accelerated depreciation of personal property and land improvements (appliances, window coverings, awnings, carpeting, landscaping, driveways, walkways, and fencing)
* More favorable determination of land/structure pro-rations than from tax assessor.
* Mileage looking for properties in your rental area (where you already own properties)
* Home office deduction
* Many more.. so educate yourself.