Start Up Costs

[Dave T]

Not sure how to handle this for 2024.

In late 2023 T/P forms single member LLC with the intent of buying and flipping houses and shortly thereafter buys first house.

He doesn't start work on the house until mid 2024 and incurs approx. $30K in expenses  which he has broken between materials, labor, utilities, etc. Work was not completed and thus house not sold as of yet.

What, if anything needs to be reported for 2024?

Thanks very much.

[BrewOne]

For a business devoted to buying and selling houses, I'd say it's listed under inventory costs, to be used when the house is sold.