Year End Tax Assistance (Flip)

[Brandon Roof]

I purchased a home in 2019 to flip. Rehab began in 2019 and ended in 2020 and the home will likely sell later this year. In regards to year end taxes, what, if any, expenses from the purchase, rehab or carrying costs will be addressed on my 2019 tax return and what will be addressed on my 2020 tax return? No purchases were within an LLC and were made by myself and/or my spouse. Thank you for your guidance!

[Natalie Kolodij]

They get reported in 2020 against the flip income. 

If you had general administrative business expenses in 19 you can report those on your Sch C (office expenses, advertising ect)