Vanessa A
Expert Alumni

Business & farm

If you are not holding yourself out to others for the business, you would likely not pass an audit if you took deductions and expensed part of your build since this is likely to be a personal residence.  The fact that you set up an LLC would not change anything.  Your intention is to live in it as your own home.  I would be highly concerned with this being looked at as tax fraud, since you are knowingly trying to take deductions on a property that is mostly intended to be personal use but you may decide to sell it. 

 

If you were a true contractor offering a service to the general public, all of the above expenses would be deductible or depreciable in some way.  However, the fact that you are not intending to make a profit and you are not actually starting a business would make all of the items you listed non-deductible.  

 

You would add them to the cost basis of your home and then if you decided to sell your home, you would deduct that from the selling price to arrive at your profit. 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"