How to record house flipping expenses in partnership

[Hezzidoggo]

Hi there,

My husband and I have a small masonry partnership. We are buying a house this winter and will be selling it in the spring, purely for business income. My question is, for the very large renovation and material expenses we will incur, do we claim those as expenses when we file our return this year? Or do they sit in the books as assets until we sell it? Thanks so much for your help. 

[TurboTaxSusan]

As these expenses are likely to be large, and the property flipping rules are fairly new, I would recommend contacting the CRA to see how they should be treated.

If you are in Canada or the United States, you can call the CRA at 1-800-959-8281. If you are elsewhere, you can call 613-940-8495. This page has more ways to contact the CRA: Contact the Canada Revenue Agency