Calculating basis on a Flip when 401(k) loans are involved?

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I have a flip I am finishing up. My wife and I took out two 401(k) loans - $50k and $30k - to purchase and rehab it. Let's say the ARV is $120k. Would the basis be the ARV less the cost to purchase is ($50k) and the cost to rehab it ($30k) or would it be the outstanding balances of these two loans? On paper, we paid cash and there is no mortgage so I am inclined to say that it boils down to the purchase cost and the cost of improvements, not the outstanding balance associated with the loans. I am asking this because if it is the latter then we will have more taxable income on the property. Also, this seems like a grey area because, well, we are paying ourselves interests on the loan so it seems like double dipping but also seems legit too. Thoughts?