SPEC HOUSES

[TAXMAN]

Have a tp that runs a landscaping business.(primary) Sometimes tp will build a spec house and sell it.(short time) Question is shouldn't this also be on a schedule c.(gain) which makes it subject to se tax.? your thoughts

[Abby Normal]

How often is "sometimes?"

[Lee B]

Are you talking about fixing up and flipping a house or building a new house?

If he is building a new house, then I would say that's SE income.

[TAXMAN]

tp bought 3 lots. built 3 houses on them and sold them in 2021. In talking with TP it appears there will be about 5 or 6 of these in 2022. I say it belongs on a schedule c subject to se. prior to 2021 , 1 every other year.