Are losses, as a "dealer", deducted as expenses and not capital losses ?
I started an LLC in 2016 with the intent of flipping houses. I also spent every day in 2016 very actively managing and working on the remodel. Unfortunately, (my second flip) it almost sent me into bankruptcy. I bought the flip in Sept 2016, but it didn’t sell until June 2017. I claimed my expenses on Schedule C for 2016, but received a check when the house closed in 2017. I’ve recently had 2 CPAs tell me that I can’t do it that way and should amend my 2016 return and include the expenses in the cost basis of the home. This article seems to tell me that I filed correctly and should just show the 2017 check as profit and pay the due taxes this year. Is that a correct assumption ?