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Article Date:
August 2026


Word Count:
1108

 

 

Dealer or Investor? Deducting the Loss on Your First Flip


Situation and Question

 

I am a retired architect, currently supplementing my retirement with commissions of $50,000 to $100,000 a year from my real estate agent activities.

 

In April 2025, I purchased a derelict older house for $520,000, intending to fully restore it, sell it, and use the proceeds to buy another such house—over and over again. This is my first project.

 

The rehab took me 11 months. I sold the house this year for about $610,000, but the rehab and carrying costs, combined with a soft market, turned my hoped-for profit into a $75,000 loss.

 

I want to deduct the loss as a dealer on Schedule C.

 

My accountant says I will have ... Log in to view full article.

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