<p>^^ Construction can get complicated, especially if you have spec homes in addition to contracted business. Sometimes spec home are characterized as investments and so are handled as investments on the taxes. It’s entirely possible to have both business expenses and losses and investment expenses and losses all tied to the same person and that person’s business. The OP has not given the level of detail, not needs to give the level of detail to analyze his losses. None of it is our business or necessarily pertinent to the initial post.</p>