So client of mine bought a house across the country, quit his job and moved his family with the intention of flipping that house.
They were there 4 months improved it and sold it and then moved to a 3rd state, where they started a new business - the flip was a one and done situation.
They provided me with moving expenses and I told them moving expenses aren't deductible.
But after some thought, I'm pretty sure you add travel costs to the basis of an investment property. Even so, does the fact they travelled across country and took all their belongings make any difference? These were costs that were necessary in order to make the investment happen.
So what expenses can I allow them to claim - Nothing? Travel cost for a single trip to the home and then from it? Or can we include the full cost - hiring movers, etc? I assume whatever we claim needs to be added to the basis of the property.