Tax question and one miscellaneous question?
Main point of the thread is about taxes for FY 2017. I bought my first flip house in September 2017. I am still working on it. Rehab should be completed by the end of this month.
I know that once I sell it, I must report it as short-term capital gains in FY 2018 taxes. Do I count the purchase as a business expense for 2017? That might create something weird on the taxes.
And what about all the materials, tools, and labor that I paid for in 2017? Do I file those as expenses in 2017 taxes, or file them in 2018 because that's when I sold the house?
Miscellaneous question (didn't want to start it's own thread). What material should the entry door and other main exterior doors be? Steel or fiberglass?