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Michael Healy
  • Investor
  • Waterford, MI
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Gains reported on Form 8949? Or...no?

Michael Healy
  • Investor
  • Waterford, MI
Posted

So I'm trying to get a cash out refi and the underwriter wants a IRS Form 8949 for every flip I did last year. Without it they won't count that income as... well... income.

My tax guy says they don't know what they are talking about. Unfortunately that doesn't seem to satisfy the underwriter. 

Any help would be a big help. 

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Ashish Acharya
#5 All Forums Contributor
  • CPA, CFP®, PFS
  • FL
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Ashish Acharya
#5 All Forums Contributor
  • CPA, CFP®, PFS
  • FL
Replied

@Michael Healy , The Form 8949 is for the sale or disposition of the Capital Asset. The property you flip is not a capital asset.  Flipping property is considered an inventory for the seller and is not reported at 8949. Your Tax return should have reported the income and related expense from flipping activities under Schedule C.  Please look at the Schedule C in your tax return and send that to Lender. 

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