The $9000 it cost to tear down the property adds to your basis in the property. This is not a deductible expense for taxes.
If you rebuild a house and use it as rental property this amount is added to the cost of the property and depreciated over 27.5 years.
If you build a house that you use for your residence, again you add the amount to your basis in the property and it is deducted when you sell the property.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
