If homes are treated as inventory, is a home purchase deductible

[Brit Foshee]

I'm seeing conflicting information online.

As a "dealer in real estate", my homes are treated as inventory.

Because they are treated as inventory, is the purchase of a home deductible in the taxable year it was purchased ?

Example- I profit $250,000 on the sale of homes in 2016 and I purchase a $250,000 home in December. Is that $250,000 deductible against the profit I have earned and then the realized gain or loss deductible or taxable in the year sold ?

Or do I pay taxes on the $250,000 and wait until the "taxable event" of selling the homes takes place ?

There are multiple view points on the internet. Curious what the BP community has to say.

Thanks,

Brit!