My client has an S-corp that is in the business of flipping houses. She purchased a home in 2022 that was sold in 2023 for a loss. I've read a few different opions as to what should be included in inventory and carried over. 

I believe the following has to be included in inventory in 2022 and cannot be deducted until 2023:

Purchase price

Closing fees

Interest

Insurance

Officer's compensation

Labor & materials

The expenses I'm not so sure about are the following:

Mileage

Utilities

Legal fees

Meals for contractors

Storage

Can these be deducted in 2022 or carried over to 2023?

Thank you!