Obviously at this time everything is out of ordinary so very difficult to predict.

The answer, like almost anything else tax-related, depends.Travel costs (in general) are deductible as long as they are what the IRS calls "ordinary and necessary" expenses.

That saves you against your ordinary rate (for federal purposes and I guess for CA purposes). 

@Wayne Brooks,@Bill Brandt,@Karen Seale,  That is the only variable (whether that boot is taxed at depreciation recapture or capital gain or ordinary income).   

Subtract the adjusted cost basis from your anticipated net sale and you get your profit which is taxed as two things - capital gain/ordinary income, and depreciation recapture.Unless you're selling the house for a loss you will not escape depreciation recapture unless you do a 1031. 

Several of my investors are partners in their law firms - too busy to do their own deals, so they look for more passive ways to invest.Flipping is a job (and it's taxed as ordinary income). 

I've done that a few times and was told my property was too small for the family as it was a 2 BR and the family currently had a 3 BR. It

@Sendhil KrishnanI would alsoLook into syndication or debt fund as since with traditional real estate you do not get to take advantage of any of the depreciation.I see many with deferred retirement accounts go this route since typically debt is taxed at ordinary income so using deferred funds you do not lose out on depreciation and can get consistent monthly cash flow

I'm not a tax expert but if you've held them for 12 months or more, the gain will be treated as capital gains which is more favorable then ordinary income.

then once the house if complete you could...1. sell the new house and pay ordinary income tax on it.2.