The inspection of our septic system failed. We had the department of health mandate that we replace it. Can we deduct the cost of the design & replacement.

Forum|Forum|7 years ago
June 1, 2019
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Irene2805

Level 15

No - If this is your personal residence the cost of the design & replacement of your septic system is is considered a capita improvement and added to the basis of your house to reduce any capital gain when you sell it in the future.

If this is a rental property, the cost would be entered as an asset and depreciated over time.

The inspection of our septic system failed. We had the department of health mandate that we replace it. Can we deduct the cost of the design & replacement.

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