Because flips are considered inventory (not capital assets), profits will be taxed as ordinary income rather than qualifying for long-term capital gains treatment.For tax filing:Report expenses like construction costs, permits, and interest as part of your cost of goods sold (COGS)—these won’t be deductible until the property is sold.Since no revenue is expected in 2024, your S-corp may show a loss, but that loss won’t reduce personal taxable income until the sale occurs.Each partner will receive a Schedule K-1 every year, including 2024 and beyond, as long as the S-corp remains active.Unlike an LLC, S-corp shareholders do not pay self-employment tax on their share of profits.

.- Loss of Alcohol Sales: Price Chopper previously sold alcohol but stopped in recent years, potentially impacting revenue.- Triple Net Lease Costs: Rising property taxes, borne by the tenant, add financial strain.- Increased Competition: Discount retailers such as Walmart, Target, Aldi, Dollar Tree, and Family Dollar provide alternatives that attract budget-conscious shoppers.A Closer Look at Worcester’s Retail LandscapeA brief examination of supermarket properties in the area highlights financial and logistical challenges:- 29 Sunderland Road: Built in 1960, this 46,050-square-foot property sold for $4.1 million in 2022.

If you have a mortgage on that property, you will likely show  a tax loss after including depreciation.

If there was not a covered insurance loss there isn't likely to be a covered loss for you either.Rather than worry about what State Farm might do, don't you you have a trusted advisor agent that you can talk to at the agency for advice?

This means the $80K LLC profit is subject to both ordinary income tax and self-employment tax (15.3%), regardless of your high W-2 income or capital loss carryover.

I have associates that fix up a place beyond the typical look of the neighborhood but they have to buy-hold (which is fine) as selling means loss of investment.

This leads to sub par lifestyle choices, and detrimental financial choices. 

You can end up with net income or, as is very common for rental properties, with net loss.

Custodians do exactly the same thing but with the added regulatory and financial scrutiny noted above.

I have around $130k in this project so far and am worried that I am going to have to take a huge loss on this project.