All Forum Posts by: Sophie Knight

Thank you. Does a refinance during it matter at all? Our original fix and flip loan matured and actually went into default, we refinaced out right before they forclosed 

And what about holding costs, can those be deducted from the profits? Even though we did right off mortgage interest which was the mortgage payments since it was a fix and flip loan?

We did not right off any renovation costs prior to the sale of the house. Only the mortgage interest and property taxes. 

That makes much more sense, thank you so much for letting me know! Do you do real estate taxes yourself?

Apologies in advance if I'm wording this incorrectly -

I had an investment property from 2021 to 2024 we were doing renovations on the whole time. We sold in April 2024 at a loss due to the time holding, having to refinance the bridge loan, and rehab costs. My tax person is saying we can only write off renovations that were done in 2024 (even though we didn't write off the previous years).

He says because of the appreciation from 2021 to what we sold it for in 2024 the capital gains tax is going to be close to $50k were going to have to pay, even though we took a loss on the house.

Does anyone know if this sounds correct? The house was in Palm Springs, CA

Thanks in advance