@BillyCrash wrote:
In publication 551 it states the following:
Construction.
If you contracted to have your house built on the land you own, your basis is:
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The cost of the land, plus
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The amount it cost you to complete the house, including....
It could be argued that the builder meets were required to complete the house since in-person discussions on options, changes, materials, design and a host of other issues were needed, and the travel costs were incurred to allow the meets to happen since the build state was not my primary home state.
I will be seeking additional guidance as you suggested.
Thanks.
You altered the quote and cut off the part that applies to you. Good luck.
Constructing assets.
If you build property or have assets built for you, your expenses for this construction are part of your basis. Some of these expenses include the following costs.
In addition, if you own a business and use your employees, material, and equipment to build an asset, don't deduct the following expenses. You must include them in the asset's basis.
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Employee wages paid for the construction work, reduced by any employment credits allowed.
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Depreciation on equipment you own while it's used in the construction.
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Operating and maintenance costs for equipment used in the construction.
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The cost of business supplies and materials used in the construction.
Don't include the value of your own labor, or any other labor you didn't pay for, in the basis of any property you construct.
