You bought a house with plans to renovate it, sell it and make a profit. Instead, renovation costs climbed, carrying costs added up, the real estate market changed - or all three happened at once. By the time you sold the property, your profitable house flip had become a loss. Can you deduct the loss?...Continue reading
If you buy and sell real estate, you need to know the difference between being classified for tax purposes as a real estate dealer versus a real estate investor. Real estate dealers are in the business of buying and selling real property—property is their inventory. Real estate investors own property primarily to earn income from...Continue reading