https://ttlc.intuit.com/community/tax-credits-deductions/discussion/construction-cost-for-garage-conversion-to-adu/01/2527269#M240685 <P>Hello,</P><P>We have converted our garage to ADU and am currently using it for my parents (no rent)</P><P>&nbsp;</P><P>Is it correct that the construction code paid (labor, material, permits, etc.) is not deductible as it would be considered as personal use?</P><P>&nbsp;</P><P>Is it correct that in future, if this were to be rented out, then the construction cost could be depreciated?</P><P>&nbsp;</P><P>Thank you for your help</P> Mon, 09 Mar 2026 04:47:25 GMT vickster2078 2026-03-09T04:47:25Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/construction-cost-for-garage-conversion-to-adu/01/2527269#M240685 <P>Hello,</P><P>We have converted our garage to ADU and am currently using it for my parents (no rent)</P><P>&nbsp;</P><P>Is it correct that the construction code paid (labor, material, permits, etc.) is not deductible as it would be considered as personal use?</P><P>&nbsp;</P><P>Is it correct that in future, if this were to be rented out, then the construction cost could be depreciated?</P><P>&nbsp;</P><P>Thank you for your help</P> Mon, 09 Mar 2026 04:47:25 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/construction-cost-for-garage-conversion-to-adu/01/2527269#M240685 vickster2078 2026-03-09T04:47:25Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-construction-cost-for-garage-conversion-to-adu/01/2527407#M240692 <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial">Yes, right now it is a personal expense and will be added to the basement of the home. If you begin to rent, then you will depreciate the property.</SPAN></SPAN></P> Sun, 27 Feb 2022 13:00:36 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-construction-cost-for-garage-conversion-to-adu/01/2527407#M240692 ColeenD3 2022-02-27T13:00:36Z