JustAnswer > Tax

Tax

Ask a Tax Question, Get an Answer ASAP!

Have your own Tax question?

7 Tax Professionals are Online Now

characters left:

Not a Tax Question?

Question

I buy property and build a new home (with a mortgage), sell the property, pay off the mortgage and the net should be my income. But I received 1099-s forms for the 2 houses done last year (at the full sale price of the home). The only place to enter this form is under personal sale of a home. Do I just fill out a 1099-misc for the income & call it good or ????

Submitted: 1073 days ago.

Category: Tax

Value: $30

Status: CLOSED

Optional Information:
Kapowsin, Washington

Already Tried:
I went to the end of turbo tax trying to find where to enter the 1099-s and only could find it in the personal sale of real estate. I need to enter it in the business area, or I don't get any other deductions throughout.

Posted by RD 1072 days and 23 hours ago.

Info Request

Are you in the business of buying and selling homes? or building home and selling them?

1072 days and 23 hours ago.

Reply

Reply to Renu V's Post: building a home & then selling.

1072 days and 23 hours ago.

Reply

and I also need to know if I am supposed to deduct the subcontractors, which makes me negative about $200,000.

Posted by RD 1072 days and 23 hours ago.

Answer

In this case you will report the sale on Sch C as income. YOu will deduct all the ordinary and necessary expenses incurred in carrying on this business. You will deduct subcontracting expenses and other expesnes incurred in building these homes.

Let me know if you have any question. Bonus and Feedback will be highly appreciated!!!

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases.

1072 days and 23 hours ago.

Reply

Reply to Renu V's Post: Do I need to report the total sale price as income and then deduct all expenses (including paying off the mortgage), or do I just report the actual amount of income from the sale (net proceeds)?

Accepted Answer

YOu need to report the gross sales and than claim the expenses incurred as deduction on Sch C.
Note that expenses related to the house sold will be expensed on Sch C.

Let me know if you have any question. Bonus and Feedback will be highly appreciated!!!

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases.

Expert:	RD
Pos. Feedback:	99.4 %
Accepts:	6485
Answered:	4/12/2007

Certified Public Accountant (CPA)

CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Tax

Ask a Tax Question, Get an Answer ASAP!

Have your own Tax question?

Related Tax Topics:

Question

Optional Information

Optional Information: Kapowsin, WashingtonAlready Tried: I went to the end of turbo tax trying to find where to enter the 1099-s and only could find it in the personal sale of real estate. I need to enter it in the business area, or I don't get any other deductions throughout.

Info Request

Are you in the business of buying and selling homes? or building home and selling them?

Reply

Reply to Renu V's Post: building a home & then selling.

Reply

and I also need to know if I am supposed to deduct the subcontractors, which makes me negative about $200,000.

Answer

Reply

Reply to Renu V's Post: Do I need to report the total sale price as income and then deduct all expenses (including paying off the mortgage), or do I just report the actual amount of income from the sale (net proceeds)?

Accepted Answer

Related Tax Questions

Optional Information:
Kapowsin, Washington

Already Tried:
I went to the end of turbo tax trying to find where to enter the 1099-s and only could find it in the personal sale of real estate. I need to enter it in the business area, or I don't get any other deductions throughout.