Flipping- Repairs in 2018 are cost basis for Sale in 2019?

[Nate Mac]

Background: Created LLC partnership in 2018. Purchased a Home to renovate in 2018 and sold it in 2019.

Purchase Price: $60,100 In August, 2018

Renovations:      $30,000

Utilities:               $   2,000

Property tax:      $   2,000

Total Spent in 2018  was roughly $ 94,100. House Closed today ( March 19) for $135,000.

I was under the impression that the expenses we made in 2018 ($34,000) would be added to our cost basis to offset the profit in 2019.  My accountant tells me I must report the expenses as a loss -$34,000 in 2018 and the costs could not be carried over. Then my profit in 2019 would be $74,900 (minus closing costs of the sale).

I am wondering if what my accountant is saying is accurate?  I have tried to read IRS publications that mentions "rehabilitation expenses increase your basis."  So must I suck up a large loss and gain or is it time to find a new accountant? 

Sincerely,

Nate