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Updated about 7 years ago on . Most recent reply
How should I file for my Flip house that still didn't sell?
Hi, so I bought a flip property (in Philadelphia, PA) for 169,000 in the summer of 2016 with the plans of selling in the year 2017 of course. In September 2016 I started the rehab process. We have put in about 100,000 already in by the summer of 2017. However, due to many unforeseen circumstances, money and the laborers who started but didn't do good work and it had to be done over ( etc.) the house is not sold yet even as of today. At the end of the last year, we decided just to try to sell it to those cash buyers as-is, had some offers but we didn't like the offers. This winter has caused some pipes to burst so now we had to fix that and the as-is offers maybe will be less than before.
So my question is how should I file my 2017 taxes. I didn't include the purchase of the house in 2016 taxes because I thought I would just do the whole for the purchase and sell on the 2017 taxes. Don't know if I messed up by doing that way. But Please help!!
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Your only deductions before you sell would be carrying type costs.....property taxes, insurance, utilities, insurance, etc. All your improvements and repairs get deducted from your sales price on the back end.