Real estate taxes for a flipper

[cdttax]

are there any recent Revenue Rulings involving a real estate dealer (flipper) writing off the cost of property as inventory. What is the best tax reporting for a "flipper" - installment sales is not an option

[aaron]

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[sclifford]

Whether or not your property would be considered investment property or inventory depends on the intent at the time of purchase.

Other facts and circumstance surrounding the transactions should also be considered. However, generally speaking, if you are in the business of purchasing property for resale then it would be considered inventory. The “net income” derived from the sale of your inventory would be treated as ordinary income for tax purposes.