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ADU expenses

ppulickal — Tue, 10 Mar 2026 06:46:42 GMT

We were planning to build an ADU and spent some money for it's prep work for Structural and Design drawings, Geotech testing etc. Spent over $7000. Later we found out we our property is not able to handle the ADU due to the soil structure. Can we write off these expenses on my tax return?

Re: ADU expenses

Opus 17 — Thu, 17 Nov 2022 00:10:32 GMT

Unfortunately, that's not tax deductible. It might be considered a property "improvement" that you can include in the cost basis of your home. That may reduce your capital gains when you sell.

Re: ADU expenses

ppulickal — Thu, 17 Nov 2022 03:57:16 GMT

Thank you for your reply.