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.