FLIPS and Rehabs

Question from Randy:

When I buy a house to rehab and flip, I enter the expenses of the rehab, Do I enter it as an repair expense?

I do a close out report and I am showing a Capitalized expense, I do not know how It got there. Help Please

Randy



ANSWER from Mike

I enter the expenses of the rehab "Improvements"

- NO, NO, NO - when you buy any property, everything and anything you do to or on this property...

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