According to an IRS ruling, that depends on how your arrangement with the builder was structured. An individual who
purchases a personal residence from a builder or developer is not entitled to a federal income tax deduction for the New Mexico gross receipts tax imposed on the sale. The ruling allows a deduction, however, if the purchaser contracts with the builder to construct the home and if the agreement between the parties provides that the builder will act as the purchaser's agent and will purchase the home building materials so that the purchaser is billed directly by the seller of the materials.
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