Discussion:"Flipping" A Property
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Discussion Forum Index --> Tax Questions --> "Flipping" A Property
| 28 December 2006 | |
| What expenses are deductible while rehabbing a house for resale? Owner has paid interest, real estate taxes, equipment and repairs. Are any of the expenses deductible or all included in basis? thanks. | |
Www.cpa1.biz (talk|edits) said: | 28 December 2006 |
| Well,
If you are in the business of flipping houses, then you can deduct any type of business expenses that you had relating to the house (business inventory). Drive to/from location, advertising, contractors to help you fix house, all the above you said, office in personal house related to the business, etc. If you are not in the business of flipping houses and this relates to a personal residence, then you can only deduct the mortgage interest and real estate taxes. You need to add repairs and add-ons to your basis of the house to avoid capital gains. Take care, Bj | |
| 28 December 2006 | |
| Discussion:Flipping real estate properties. | |
| 28 December 2006 | |
| If the 'flip' is just a side-project to another business or w-2 wages then the interest, taxes, and repairs are added to your basis. Equipment, if used in a T or B, can be depreciated under MACRS or accelerated under Sec. 179. | |
| 26 March 2007 | |
| Here is my situation... I am building a property in Florida and plan to sell it for profit. I have never done this before, and have a regular job (W-2). I do have one investment property locally that I have tenants in....
In 2006, I had some expenses related to the construction as well as mortgage interest and taxes... are any of these deductible, and if so, under which form? Thanks, | |
