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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4678
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I operate a Home Improvement company in Dayton Ohio area. I

Customer Question

I operate a Home Improvement company in Dayton Ohio area. I have recently bought a house to fix -up and resell. When it comes to claiming the purchase and cost of materials and income, should I treat it like any other job, i.e. calling the house, and repairs, materials to be deducted from the final sale price which is regarded as income?
Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.

Hi from just answer. I'mCustomer I'll assist.

Expert:  PDtax replied 1 year ago.

The cost of the house and all the costs of improvement should be treated as cost of goods sold, deducted from the sale proceeds of the house when sold.

It also gets ordinary income treatment at sale.

You can treat it as any other job, "Brown St house", and bill to it like your other projects.

Please ask if you need follow-up. If this covers things, please leave positive feedback for me when you rate my assistance to close out your inquiry. I'mCustomer

Expert:  PDtax replied 1 year ago.

Hi again.Customerhere.

I'm just following up to see if you have any additional inquiries. If this answered your question, site management asks that customers rate their assistance to close out the request.