Flipping as a contractor and taxes
Hello all,
Once again it's a pleasure to be part of such an amazing community. My question is how to claim proceeds from flips when I am the contractor. I own my own remodeling company LLC and do flips when work is slow. House is bought personally. Should I be expensing everything personally for the flip or should I be hiring my company? From my understanding taxes will be lower if I hire my remodeling company just like any other company. If my company bills me $40k then personal I can write that off.
I did talk to a CPA and he explained that I would be double taxed if I hired my company Instead I should just be expensing all the cost. Problem is how would I expense worker wages that are 1099 through my company and how would I write off the hundreds of hours I worked on the job??
if you think about it I have a whole company designed to do this work. Employees, insurance, workers comp, Equipment, tools, contractor pricing. Just seems foolish to do it personally.