Real Estate Tax Law!

[Andrew Santana]

If a flipper were to create an LLC as a C-Corp, with the new tax law in place, could rehab cost be written off? If so, how much of it could be written off?

[Natalie Kolodij]

@Russell Brazil is only kind of right. 

If you're doing a rehab on a flip those expenses get capitalized until the flip is sold. 

They're expensed when it's sold- if for example you buy a property in October, put in $50k then it doesn't sell until February of the next year

You don't just get to deduct $50k in year one, you deduct it against the income in year 2. 

Neither the entity, nor the new tax laws impacted that in any way.