Expenses turned Income at Settlement
Rookie mistake. So I just closed on a sale and received the settlement check and was more than expected. I soon realized that the check had over budget expenses that I paid out of pocket included. So my renovation was estimated at $35,000 (hard money) and I came out of pocket to cover the over budget of $12,000, $47,000 repair when done. It was a small flip that got pricey, nevertheless, the house is sold. But now I am holding a check that has $12,000 of personally invested funds that will now be taxed as income for 2018. Any recommendations?