Vanessa A
Expert Alumni

Investors & landlords

A lot of what you listed is not deductible as part of the basis.  

 

Obviously, the construction of the home is deductible.  The part the contractor did, his labor and then the materials you provided.  Your labor does not have any dollar value for tax purposes.

 

You cannot deduct curtains, paint, caulk and such that was used for routine maintenance or repairs.  Only things that added to the value of the house or extended the life of it.  So, if you did plumbing repairs, they would not be added to your basis, however, the plumbing installed when building your house would be part of the original construction cost.

 

You do not need to itemize the costs for your taxes.  You will just enter the total cost basis.

 

As for documentation in case of audit, a spreadsheet showing all of this information is great.  Receipts to back it up is even better. 

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