I set up a business for a self build and have been keeping track of things such as equipment purchases and rentals(and the insurance and interest paid), fuel and repair costs, etc. What I am not sure can be deducted would be things like hiring a tree service to remove some large trees, or the costs of delivery and materials for a small drive in (not a complete driveway). Are those things deductible? Where is the line drawn between the business expense and the "home owner's" expense ?
Yes, the things you mention are legitimate contractor expenses.
Oh. Interesting. Where does this get entered on my tax form in Turbotax?
What I don't believe is clear, is whether this is a home that you will sell OR is this your personal residence that you are building?
@Rick19744 Does the fact that this will likely be my personal residence matter?
Yep.
You can't circumvent the tax code by setting up a trade or business for expenses that are personal in nature and expect to get a tax deduction.
If you review the response by @JohnB5677 , he assumed that you were a general contractor building houses that would be sold. That was not clear in the original facts, which is why I asked the question.
Ok. I'm thoroughly confused now. I worded the question as this was going to be a self build and I was acting as my own general contractor. The answer sounded like that was known.
No confusion on the end result. Personal home......not a business......no deductible expenses for tax purposes.
If you read @JohnB5677 response again:
Pretty clear that @JohnB5677 is assuming that you are in the business of being a general contractor and building a home for a potential buyer. If he did not assume this, then the response is wrong.
Once again, that is why I asked the question.
Can't have Section 162 trade or business expenses, if you don't have a trade or business. Where is the expectation of any profit in your scenario? You aren't getting paid for your work. This is not a business eligible for Section 162 expenses.