Do carrying costs increase cost basis?

[Rob Hendricks]

I'm having trouble finding a definitive answer on this. Assuming I purchase a house with the intent to fix and flip in a 6 month window, do the carrying costs I pay increase my cost basis, such that my taxable profit is decreased?

So, for example, assume

Purchase 80k

Rehab 20k

Closing 5k

Carry 10k

ARV 175k

Sell commissions/fees 15k

Would my taxable profit be 45k (carry costs included) or 55k (carry costs excluded)?

Thanks!