Capital Gains Reporting on Income Statement

[Account Closed]

Hi all, 

Last year was the first time I started flipping houses.. on one of my houses I took a pretty hefty loss after selling it and was curious what avenue I take (what form/schedule...) that I utilize to file for claim that on my taxes is there is a tax break for such a thing.

Thanks

[Ashish Acharya]

@Matthew Dunaway , You mentioned capital gain, but this is not capital. Your income/loss is ordinary. That is a good news. Otherwise, your loss would be limited to 3000 and could not offset your ordinary income. 

Here, your total net profit from all the profitable flips will be netted against the loss from that one bad flip. It basically eats your profit and you pay less taxes. 

As already mentioned above, you will report the activity in the schedule C if there no entity involved or if you have single member LLC.

I have a feeling that you do not have any entity, and based on your post, looks like you are a regular flipper. Consider getting an S-corp, it will eventually save you taxes. There are other posts on this.