Question

Multi-member LLC for house flipping

Forum|Forum|2 years ago
March 14, 2024
1 reply
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My family and I formed a multi-member LLC in October 2023 to purchase investment homes to fix and sell. We only purchased one house in 2023. We started the remodel but didn't finish the house until February 2024. Do we file this year (2023) to report the purchase of the home? or do we wait until tax year 2024 to also be able to report the sale and add the cost of the remodel. Another option I found on this forum is that since the house was purchased as an investment, we have to file in 2023 to report it as inventory. Which answer is correct?

**no rental income, the house is currently under contract

Thank you!

TurboTax Business Windows

D

DavidD66

You need to file a 2023 Form 1065 to report the purchase of the property as well as any other improvement costs you incurred. Capital expenditures are not deductible until you sell the property. Expenses that are deductible as they are incurred include: