Hypothetical situation: Fred renos and flips houses for a living. Over the course of the financial year, he works very hard, buys a number of houses, renos them and sells them all. Fred sells each house for a modest profit. At the end of the year Fred has made $200,000 profit on paper, however, in reality the buying, holding, renovation and selling costs were $100,000 meaning he has $100,000 remaining after expenses. Can he deduct all buying, holding, renovation and selling costs to ascertain a total taxable income amount of $100k for the financial year, or are there other considerations?