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Hi, my name is Mark. I will be happy to help you with your questions. Was this an investment are you going to continue this type of activity? Have you built houses in the past?
What was your intent? Was these intended to be rentals or flips?
If it is a business activity it would be reported on schedule C. The net income would be subject to both income and self employment taxes. If it is considered an investment then the sales would be reported on schedule D. Since the property was owned for less than 12 months the gain would be a short term capital gain.
How much gain did you net? Do you have any other earned income (wages, or self-employment income)?
You would use 4797 if you place the property into service and depreciated it. So if the properties were rentals you would use depreciation and report the transaction on form 4797. The tax difference between the two treatment would be 15.3% (assuming that you earned income is below the FICA limit).
You would show your original purchase date, price, and the cost of improvements. You would show the sales date and sales price. You would want to separate the two transactions.
This is a tough one. It depends on your intent. If you intended to make the properties rentals and then the market conditions changed causing you to decide to sell the properties then they would be considered an investment. If you intended to flip the properties this would be a business and reported on schedule C.
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