Hello all,

I started an LLC in August of 2013 that focuses on residential real estate flipping. I purchased the first house and have completed the renovations. I have plenty of expenses including the cost of the house but since it has not sold yet I'm wondering how I should be reporting this year taxes. My plan is to report as an S corporation and pass everything on to me (as the sole proprietor). My hope was that it would have sold this year so that I could neatly just pay on the profit.

So what I have is like this (hypothetically), 55K in expenses for CY 2013 and no income. If I write off all these expenses as losses and then pass that through to my personal income (using an S Corp designation) I would be setup nicely this year but next year when the house sells I'll be on the hook for the entire sale price as a income since I would have nothing to write off against it (or at least that's my understanding).

So the question is, an I forced to report the loss this year or can it be deferred to next year?

Any insight would be appreciated!

Dean