Deductions & credits

I appreciate your thorough answer. I wanted to add one twist to this scenario. 

 

If we issued a 1099 to a non-corporation worker (landscaper, drywaller, etc) in 2024 but haven't sold the house yet, do we list the amount the 1099 was issued for anywhere on the 2024 taxes or do we wait until we sell it and add it to the cost basis?

 

Thank you.