I am in a 22% tax bracket, filing jointly with my husband who is still working. I have an LLC, and flip houses (rather slowly). I am thinking that it might be better to use my expenses on my house flipping project to lower my current tax liability rather than using the expenses to increase the cost basis of the house that I am flipping.
If long term capital gains tax for the sale of the investment house is 15%, doesn't it make more sense to worry more about finding deductions for my current income than to lower my capital gains tax liability later when I sell the rehab project? Or am I thinking about this all wrong?
