For tax purposes after buying, fixing, and flipping a property; can you add closing costs too the expenses along with the Materials and Labor to fix up the property.
You bet your bippy you can deduct closing costs on a flip.
It's the cost of doing business, ie. an expense.
FYI: If, like me, during your rehab you were glued to your cell phone a few hours a day with plumbers, lawyers, surveyors, the local lumber yard, etc., be sure you include your mobil bill as an expense.
Does anybody knowq the answer to this ??
Yes you can.
you can deduct it when you sell the property.. that is what i was told
You bet your bippy you can deduct closing costs on a flip.
It's the cost of doing business, ie. an expense.
FYI: If, like me, during your rehab you were glued to your cell phone a few hours a day with plumbers, lawyers, surveyors, the local lumber yard, etc., be sure you include your mobil bill as an expense.
I racked up a $400 bill my last rehab
Thank God it's all a write off.
[addsig]
Only on flips, not rentals?
your personal labor is not a write off as you are not actually paying out any money.
unless you are an employee of the corporation and being paid a salary. then it would be deductable to your corp.
closing is deductable.......kenmax