Tax Deductions For Home Flippers

Dated: 12/29/2015

Views: 264

So What can You Slam-Dunk Deduct?

Here is a very partial list of possible deductions a typical flipper can claim, each year, whether in a startup phase or not:

  • Interest on business loans.

  • Advertising and marketing costs.

  • Costs of an assistant or laborer (but not while they’re renovating a property, in which case labor costs are added to your basis).

  • The home office deduction (technically, “business use of your home”).

  • Mileage you drive checking on properties, scouting new neighborhoods, or meeting with buyers, sellers, vendors, agents and advisors. You can take 55.5 cents per mile you drive for business purposes. Keep a log and an appointment book in case the IRS audits you.

  • Business legal expenses (not personal expenses).

  • Tax preparation fees.

  • A salary for yourself as an owner/employee of a corporation (if you have a corporation).

  • Local and state taxes.

  • Office supplies. But not capital equipment such as printers and computers, unless you can get it in under Section 179. Remember, you must depreciate computers over five years.

  • Maintenance costs.

  • Consulting fees.

  • Health insurance for yourself as the owner/employee and your staff, if any.

  • Bookkeeping fees.

  • Exterminator fees.

  • Lawn maintenance charges on business property (but not landscaping fees, which are probably a capital investment).

  • Office space, if you lease an office other than your home.

Note: If you’re running your flipping business inside a self-directed IRA or other retirement account, then none of these are deductible, simply because there’s no taxable income from flipping operations to deduct.


If you're like many of us after filing taxes, you're wondering what you can do to take advantage of more deductions next year and how to lower your income-taxes.  If you already own a home and are claiming deductions there, you may want to consider investing in real estate to reduce your tax-burden.  Feel free to contact me on how to qualify for an investment property or for access to hard-money lenders in the Philadelphia area (and how to still meet your income / profit goals even when utilizing a hard-money lender).  Wondering exactly what you can deduct when flipping a property?  Take a look below (and remember to contact your CPA for specifics or tax-related questions).

Blog author image

Boots Levinson

We are so much more than a full service real estate firm; we're a group of talented people with a passion for finding the best way of living. People who make every effort to help you live who you are.....

Latest Blog Posts

Eight Surprising Things Ultra Productive People Do Every Day

Eight Surprising Things Ultra Productive People Do Every DayWhen it comes to productivity, we all face the same challenge—there are only 24 hours in a day. Yet some people seem to have twice

Read More

Mar 17 2018 43908 1

Calling all Heroes! Did you know that YOU may qualify for a refund after your closing on your home, whether it be as a buyer or seller? As a way of showing my thanks and gratitude for all the

Read More

The Late Great Paul Cret

The Late, Great Paul CretBy Design. By WITOLD RYBCZYNSKI OCT. 21, 2014 1910 archival photograph of Paul Cret. Credit Paul Philippe Cret Collection, the Architectural Archives,

Read More

PANTONE COLORS TRENDING IN 2018

THE PANTONE COLORS THAT WILL BE TRENDING IN 2018From powerful pink to minion yellow, these are the hues you can look forward to seeing in home design in 2018.We're still wrapping our heads around

Read More