I was wondering if anyone can tell if utility expenses are dedubtible for capital gain purposes when flipping a house. Basically I have all of my receipts but I am wondering if I can include gas, water, elec, and homeowners insurane as deductible expenes.
Any advice would be great
If you are not living there… there should be no reason why you cannot write off the utilities…
I’m no accountant,but we always include these as “holding expenses” before the sale.I turn it all into the accountant,and I think she deducts it all the same as expenses then the “profit” is your cap gains.I think it’s at 15% for now anyway.Hope this helps,but definitly contact a GOOD accountant.Not a friend who once took accounting because the laws change often.Best wishes to ya!! :cool
Capital gains don’t apply to flipping. You deduct all your expenses, like holding costs, against the sales price and report profit as ordinary income.