Deductions related to a flip

[CalRehabber]

What is the name of your state (only U.S. law)? CA

I recently bought a very distressed house which will become a long term flip; aprox 1 year.

I know that on my rental properties, I can deduct mileage and meals.

Can I do the same with my long term flip, even though I do not plan on renting it out?

 

[tranquility]

Probably not. (Unless your name indicates multiple flips.) Since this is a single property, you are not a "dealer" and you would not have to follow the rules there. Basically, it would change capital gains income into ordinary income. But, you can take expenses as they happen.

Here, your direct costs go into the basis of the property. Mileage and meals have their own rules and I would need to know, under your facts, if they are [deductible/go into the basis] at all.

 

[HomeGuru]

Probably not. (Unless your name indicates multiple flips.)

**A: and then the status changes from real estate investor to acrobat.