Thanks for the response. Is the profit from the flipping treated as capital gain or ordinary income?  How do the related flipping expenses to be treated in either of the assumption? I spent 50k this year to repair and remodeling the house. How should I deduct this expense this year or just add it to the basis of the house?

What did your paid tax professional tell you?  I'd follow the advice or pay to consult with someone competent if you want a second opinion.

The reporting depends on how often you do it.  If you flip one house in ten years, you have a capital gain.  If you are in the business of flipping on a regular basis, it is ordinary income and goes on a schedule C.  The costs get added to the basis.