Accrued revenue for sale of flip ? my closing is being pushed

[Mike Nelson]

I have a flip i bought in October 2015 that was suppose to close on the 31st.  But we now have an issue that is pushing it a week. I have never had this problem, but is there any tax law that allows for accrued revenue for year 2015 vs having to claim it in 2016?

[Cameron Skinner]

As long as your a cash basis which almost everyone is, there are no accrued revenue issues until you get to 5 million in sales and even those issues usually only effect contracting companies holding their own inventory not flippers.  If you are substantially improving the property such as additions structural work you might get kicked over in this area, if just paint carpet and finishes you should be fine. In real property transactions irs requires you to "capitalize" your expenses meaning you can't take any improvements to the real property until you sell it. If you are running a flipping business you can take some expenses associated with the flip in 2015 called "current" expenses such as interest, property taxes, utilities, milage, ect. Bottom line get a good licensed tax professional in your area, not a franchise type, some one with some letters behind their name and preferably own investment real estate themselves. I promise they will save you more in taxes then you will pay in fees.