I bought a house in 2011 as an investment, incurred expenses while rehabing, but I didn't sell it until 2012. Do I list all my expenses through Dec 31, including the purchase price, on the 1040 business expense form? (I'm an LLC.) If I do, that greatly skews my adjusted income, allowing a huge refund. If so, then do I just list the gross sale amount on my 2012 taxes next year and pay more in taxes?
Thanks