Writing off your repair expenses provides benefits only if you straddle a tax year with your flip. In other words, you buy the property in November of one year, make repairs for several months, and then sell the property in April of the next year. You will need to be very careful about characterizing something as a repair if the IRS thinks it is a capital improvement. Repairs can be written off on your taxes. Capital improvements are added to your purchase price and have the result of reducing your taxable profit on a resale.