Mobile Home Flip - Where do I enter this?

Brock_626
Brock_626 Member Posts: 1 Newcomer
in Filing my taxes

We purchased a mobile home in February 2024 to flip and sell. We are still working on it now, as of March 2025, but should be done within the next couple of weeks. Do I need to enter this anywhere on my taxes for this year? We haven't made any money off of this yet, but we have spent a lot of money working on it. Would this be a schedule D or C? Do I report it on our 2024 taxes or just wait until we sell it and report it on our 2025 taxes?

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Answers

  • CoryF
    CoryF FreeTaxUSA Agent Posts: 198
    edited April 16

    Thank you for joining our community, Brock

    Any costs incurred to improve a property must be capitalized to the basis of the home. This means that you add all the costs paid for since it was purchased in February 2024 to the purchase cost of the home. There is no reporting of income or expenses on the current tax return.

    Since this is held for investment, you will only report the income when you actually sale the property. It will be reported as an investment sale on the Schedule D.

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