If property flipping is your business, you can claim income tax deductions which a business can. Amongst many other deductions, some specifically applicable to real estate transactions are:
It’s a business so you can deduct expenses such as home office expenses, motor vehicles expenses, advertising and even meals and entertainments.
Deduct all Legal costs, insurance, land transfer tax and other closing costs.
In case if you have to terminate a mortgage, you can deduct that one.
You can deduct all the closing costs such as the lawyer’s fee and realtor’s commissions
While you are preparing to sell the property you can all deduct all the expenses such as hydro, insurance, mortgage interest and other maintenance expenses.
All the expenses incurred on renovations and improvements.
When you are in the property flipping business, the properties are held in your inventory.