Important Service Announcement: Based on user feedback we are not shutting down the TaxAlmanac.org website however the site is now an archived version as of June 2014. While all of the existing discussion threads and commentary will be preserved you will no longer be able to edit content, post to forums or create additional logins.

Discussion:1120 C CORP Income reported ?

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Tax Questions --> 1120 C CORP Income reported ?


THGINV (talk|edits) said:

19 April 2007
I have a tax question concerning a client who has the following situation:

C-CORP since 2002. He regularly "flips" houses.
Last year he flipped 3 houses within the year. This is the only income generated by his C-Corp.
Question: Does he report Income on 4797; Sch. D; or "Gross Sales" on Form 1120?
Dilema, if he reports all on 4797 or Sch. D, he will show no "Gross Sales" on 1120, will this raise a red flag with IRS?
Please advise

Kevinh5 (talk|edits) said:

19 April 2007
regular income, they are in the business of flipping houses. COGS is whatever they have in each house sold, ending inventory is whatever they have spent on houses not sold by end of year.

JR1 (talk|edits) said:

April 19, 2007
Agree with Kevin.

Larry0434 (talk|edits) said:

19 April 2007
I agree. By the way, flipping real estate and incorrectly reporting income as capital gain is a hot topic with the IRS at this time.

KatieJ (talk|edits) said:

19 April 2007
And the notion of flipping houses gives me the most interesting mental images ....

Jdugancpa (talk|edits) said:

19 April 2007
Isn't the tax rate the same for LTCG & ord inc in C corp? What does it matter?

KatieJ (talk|edits) said:

19 April 2007
Might free up cap losses ... if the corp had any ...

San Diego (talk|edits) said:

20 April 2007
You mean you don't get a K-1 from a C Corp? Damn TurboTax!!!!!!!!!!!!

To join in on this discussion, you must first log in.
Retrieved from "http://www.taxalmanac.org/index.php/Discussion:1120_C_CORP_Income_reported_%3F"
Personal tools