Greensboro, NC · Member since 2015 · 7 posts · 2 votes
Hello all. My husband and I are looking to rehab and flip 2 houses a year in 2016 and 2017. We will be living in them during this period in order to build up capital faster. My question is; How does living in the flip effect the tax end of this? Is there any reason that we should not go ahead a register a business name so that we can write off all of our business expenses? I am having a hard time finding this information online anywhere, so any insight on this would be greatly appreciated.
There are a few ways you can make this work and a couple of ways to set it up that will have it go horribly. I second @Account Closed's advice to consult a CPA about your specific situation and plans as this is an issue that is fraught with way too many issues to take generalized advice on.
There are a few ways you can make this work and a couple of ways to set it up that will have it go horribly. I second @Account Closed's advice to consult a CPA about your specific situation and plans as this is an issue that is fraught with way too many issues to take generalized advice on.
Hello all. My husband and I are looking to rehab and flip 2 houses a year in 2016 and 2017. We will be living in them during this period in order to build up capital faster. My question is; How does living in the flip effect the tax end of this? Is there any reason that we should not go ahead a register a business name so that we can write off all of our business expenses? I am having a hard time finding this information online anywhere, so any insight on this would be greatly appreciated.
Thanks, Amber
You'll want to get that done ASAP, Amber, so you two can start building credit in the business separate from your personal credit. Start with Net-30 trade lines and then graduate to credit accounts and cards. Most lenders want to see 2 years in business. So, the sooner you start the clock the better.
David J Dachtera
"Success is not a destination. Failure is not an event. Success is a process, failure is a choice." - DJ Benedict
Thank you all for the input! I do believe that I will talk with an accountant when we sell our first flip and decide from there what the best course of action should be. From my understanding, when I start my business, I should be able to write off some of the expenses incurred while doing business prior to legal startup. This is something that I will have to do more research about.