Can i claim mileage for a flip home as a part of making improvements expense, that is sold as capital asset

Mimi98948 — Sat, 01 Jun 2019 07:42:41 GMT

It depends. If this is part of a business expense in whi...

DanielV01 — Sat, 01 Jun 2019 07:42:42 GMT

It depends. If this is part of a business expense in which you actively participate and for which you pay self-employment taxes, then the answer is yes. These expenses would be deducted as Vehicle Expenses in your Business Income interview.

However, if the capital income is passive (you bought it, let it appreciate, and then sold for a profit), you could only add expenses that increases the basis of the original purchase. You might be able to claim gasoline, but not mileage.

Likely, if flipping homes is your trade, you have a business that allows you to deduct the expense. In this case, the home is not considered a capital asset but more like inventory. You pay self-employment (and income) taxes on the net profit of the sale. But you are also able to claim far more deductions (because of the active participation).

topic Can i claim mileage for a flip home as a part of making improvements expense, that is sold as capital asset in Deductions & credits

Can i claim mileage for a flip home as a part of making improvements expense, that is sold as capital asset

It depends. If this is part of a business expense in whi...