Therefore, you would not recognize the rehab expenses until you sell the underlying inventory.In other words, you can be a cash basis taxpayer, but still have an inventory account where you accumulate your rehab transactions.To explain cash and accrual transactions a little better, here are the following two scenarios.1)  You perform work in December and invoice your customer in December, but they do not pay you until January.An accrual basis taxpayer recognizes the revenue in December.  

@Dana Whicker I don't think it's the mice doing that much in damage but the fact that the home might have a lot of custom work that needs to be demoed and re-done, just an assumption.

I explained to the customer service rep(CSR) that this  was not my issue and the data they provided to me was not an "Absentee Owner".  

In Wisconsin I am a customer without one and a client with one.  

But as we keep pouring money and sweat equity into this place (and especially when I drove over after work last week and saw when I'm betting were two guys on the corner waiting for customers for their drugs) I'm wondering if anyone that's not section-8 will even consider living in the area.Gail

I highlight these to review first.4.

Customer - Who are the firms customer2.

Next have business cards made and leave  one with every customer you serve .

AND you don't have to try and explain the difference to every potential customer.

How can it be my responsibility as a customer to know underwriting guidelines of his firm and Fannie Mae/Freddie Mac.