Hi all! During 2020 I was rehabbing a property. Had many challenges with delays, covid etc.. expenses really high and property is only ready for sale this week. My question is, am I allowed to claim the expenses ( the rehab) on income taxes.. not sure how it works since it is not a revenue property. Any insight will do.. thanks! Property is in Missouri.
Add the expenditures to your cost basis in the property so you can recover them when you sell it.
Are you a flipper?
If there are costs directly related to the property - most likely capitalized and factored when you sell the property
If there are general business costs not related to the property - you may potentially be able to expense those costs.
Basit Siddiqi, like interest on loans and legal fees? .thanks !