cientax Posted April 17, 2007 Report Share Posted April 17, 2007 Have a client that buys houses, fixes them up and then sells them. many on installment sales where he holds the note. My question is is how is this reported from the Sch-C to the 6252? Or do I start with the 6252 then to Sch-C? Quote Link to comment Share on other sites More sharing options...
Redneck Posted April 17, 2007 Report Share Posted April 17, 2007 Sounds like he is selling inventory, in which case Form 6252 is not required. I think I'd set them up as "accounts receiveable" on the business books. Have a client that buys houses, fixes them up and then sells them. many on installment sales where he holds the note. My question is is how is this reported from the Sch-C to the 6252? Or do I start with the 6252 then to Sch-C? Quote Link to comment Share on other sites More sharing options...
GERALD Posted April 17, 2007 Report Share Posted April 17, 2007 Redneck is on the right track. Dealer's are not allowed to use the installment method for sales from inventory. Also, interest income received in the ordinary course of business, ie, dealer financing, is ordinary business income-Sch C. Quote Link to comment Share on other sites More sharing options...
D Eckerman Posted April 17, 2007 Report Share Posted April 17, 2007 YOU MIGHT WANT TO SET THEM UP SEPERATELY, buying, fixing up and selling and then financing... do a couple scenarios that would give him the best options,, interest, lower tax, soc sec etc.. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted May 2, 2007 Report Share Posted May 2, 2007 You can not use the installment sale option on these houses, because this is a business, and the houses are the 'inventory', and inventory is specifically excluded from the types of sales that are allowed as installment sales. Quote Link to comment Share on other sites More sharing options...
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