Costs associated with rehabbing a flip - tax

[Mary Gallardo]

How does your tax accountant report rehab costs on your tax return?  As ordinary expense as incurred or defer the costs until the house is sold?

[Linda Weygant]

The answer is going to be "It Depends"

Rehab costs before or after the asset is placed in service?

Electing De Minimus Safe Harbor or not?

Are the expenses repairs or upgrades?

Do you have passive losses locked or not?

Are you looking to sell soon?

What are your other sources of income and how much are they?

What type of investing?  Flipping, Rentals?

Way too many scenarios here to just state which way it should be done.  And if you get 99 people saying their accountant does it one way, that doesn't mean that it's the right way or the best way for you.

If you trust your tax preparer, then trust that they know what they are doing.

If you don't trust him/her, get a new one.