LLC Flipping Houses

[MelanieCPA]

Two guys buy a house to rehab and flip. They put the home/mortgage in the name of an LLC. There is no income until the house is completed and sold. They are paying the mortgage out of their individual/personal accounts. What happens to the mortgage interest paid??

[geekgirldany]

Capitalize it until the house is sold.

[MelanieCPA]

Thanks...

That is what I thought. They are not going to like that answer. Oh well...