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Updated about 4 years ago,
Rental turned "Flip?" - How will it be taxed?
I bought an out-of-state duplex intending to rehab and rent it. In 2019, I Rehabbed Unit 1, and advertised for rent but didn't find a tenant. In 2020, I rehabbed Unit 2, and now I want to sell the duplex in 2021. In my 2020 taxes, how do I treat the expenses incurred in 2020 ? What about the depreciation taken in 2019 ? Will profit (if any) be taxed as ordinary income or as capital gain ?