Tax Court considers house flipper’s expense deductions

With many real estate markets on the rebound, real estate investors are resuming house flipping strategies to reap profits by,among other benefits, deducting large amounts of related expenses. But those expenses are deductible only if incurred in connection with a “trade or business.”And, as the taxpayer in the recent case of Ohana v. Commissioner learned the hard way, a trade or business requires more than just vague intentions to sell at some point.

Read the full article in the March/April issue of Real Estate Advisor