Can I write off the purchase price and improvements of a home I bought in 2018 that I’m going to flip in 2019?

by Alan M. Schapire, CPA | Feb 26, 2019

I purchased a house in 2018 that I'm going to flip in 2019. Can I write off the purchase price and all improvements made on my 2018 taxes?

No. This would either be the acquisition of a rental property asset subject to depreciation rules or a real estate asset held for investment. In either case, the purchase price and improvements cannot be written off.
If you are new to or unfamiliar with real estate investing, I recommend that you seek the guidance of a qualified CPA.

You should consult with a tax professional on such complex matters.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Alan M. Schapire, CPA, is a principal with Convergent Financial Strategies LLC in Wayne, Pa.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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