Flipping houses... expenses. capitalized or deductible?
I am a real estate professional. (not passive activity).. I file jointly with my husband who is a doctor and has high income (500k/yr). I have LLC's for mostly flipping properties. I have only 3-4 rentals in my 3 LLC's .. The rest of the 20 some properties are for flipping. In getting these properties in livable condition ready for sale, do these repair expenses have to be capitalized or can be deducted in same year? What about labor costs? Actual Material costs? Home owners insurance paid on properties? Car expenses that I use for this business? Can I use my car expenses for each LLC or does it have to be more specific and allocated to each house (which is close to impossible). What schedule do I need to use , schedule C or E? Is there any limits on the losses? I am finding alot of conflicting information on these issues. Please help!