Rolling over profits in one property to avoid tax

[Account Closed]

I'm under contract on an existing single family in Billings, Montana. I already own an existing multiplex here in Billings (and apparently that property is like finding unicorn farts). My question is, if I wanted to flip the property I'm under contract on to pay down the mtg on my quad, would I be able to avoid taxation on those profits from the flip? Can you roll profits from one property sale into an already-existing property within a year and thus avoid cap gains? We may try and BRRR the property alternatively too...any thoughts?

[Natalie Kolodij]

@Account Closed No- Improvements on your 4 plex are most likely going to need to be capitalized and added to the basis of the quad and depreciated. Only smaller repairs get to be expensed. 

So if you flip a house and spend 30k in a renovation on the quad- it's just going to bump your basis on the quad and 1/27.5th of those expenses would be deductible in that first year. 

If you have the cash to flip the house....why not use that to improve the 4 plex, take out the equity from the improvement- and utilize a BRRR strategy there.

I'm not sure what you're referring to regarding cash put into that process being a deduction.