Flipping Tax Question

[Michael Delmont]

I apologize if this has already been asked:

I purchased a condo in 2019 to flip using hard money and it will sell in 2020. 

Do I enter the full purchase price in my Cost of Purchases or just the down payment on the Schedule C?

Thank you

[Ashish Acharya]

Originally posted by @Michael Delmont:

I apologize if this has already been asked:

I purchased a condo in 2019 to flip using hard money and it will sell in 2020. 

Do I enter the full purchase price in my Cost of Purchases or just the down payment on the Schedule C?

Thank you

You don’t report anything related to that purchase until 2021 when you file 2020 taxes. 

 If you had operating expenses such as marketing, advertising, or some other start up cost then you could put that in your schedule C for 2020.