Posted by JHyre in Ohio on March 05, 2002 at 13:50:34:
2002 purchase and improvements are essentially inventory and have no effect in 2002. When resold, what you have into the property (i.e.- its basis) would be deducted from the sales proceeds to arrive at your taxable gain.
Please help me to better understand the
tax accounting process when using a c-corp to flip.
I more or less understand the process when it all happens in the same tax yr. My question(finally) is –
If you were to purchase a property via c-corp in say-----nov-2002, you spent 3-4 months to rehab and then resold it in feb of 2003. How would you account for the propery on your 2002 corporate books?