MATH ON MY FIRST FLIP

[Kishan Patel]

HI all, 

I recently got an offer for one of my properties that I purchased in April 2017. I have never flipped a house before and wanted to get the math straight before we decide to proceed with the transaction. 

(nice round numbers to keep it simple)

Purchase Price: 75k

Renovations: 10k 

Furniture & Appliances: 5k 

Offer: 120k

What I wanted to know is will the furniture and renovations fully go towards my cost and minimize my capital gains? Therefore saving me from paying taxes on that extra 15k of profit. Just wanted a ballpark idea of how it worked and what my bottom line would be before I reached out to my accountant on the matter. Thanks!