How to report taxes on flip between tax years

[Spencer Wetmore]

Hi - I have a general question on taxes for flips. I purchased a house with a partner in 2017 that we rehabbed and will be selling in 2018. There were a decent amount of costs incurred in FY17, but I'm not sure if these costs are capitalized into the property and then offset the gain upon sale or expense as incurred. My partner met with a tax professional who said we shouldn't be expensing anything in FY17, but this seems strange to me for items like mileage and other operating costs. What do you think?

Also, does anybody know a good real estate tax professional who has the capacity to take on another client this late in the game? I know it's ironic that I am a CPA in public accounting...but I don't do taxes!

Thank you!