topic The inspection of our septic system failed. We had the department of health mandate that we replace it. Can we deduct the cost of the design &amp;amp; replacement. in Deductions & credits https://ttlc.intuit.com/community/tax-credits-deductions/discussion/the-inspection-of-our-septic-system-failed-we-had-the-department-of-health-mandate-that-we-replace/01/249905#M31169 Sat, 01 Jun 2019 20:23:40 GMT johnarens95 2019-06-01T20:23:40Z The inspection of our septic system failed. We had the department of health mandate that we replace it. Can we deduct the cost of the design &amp; replacement. https://ttlc.intuit.com/community/tax-credits-deductions/discussion/the-inspection-of-our-septic-system-failed-we-had-the-department-of-health-mandate-that-we-replace/01/249905#M31169 Sat, 01 Jun 2019 20:23:40 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/the-inspection-of-our-septic-system-failed-we-had-the-department-of-health-mandate-that-we-replace/01/249905#M31169 johnarens95 2019-06-01T20:23:40Z No - If this is your personal residence the cost of the d... https://ttlc.intuit.com/community/tax-credits-deductions/discussion/no-if-this-is-your-personal-residence-the-cost-of-the-d/01/249932#M31173 <P>No - If this is your <B>personal residence</B> the cost of the design &amp; replacement of your septic system is <SPAN>is considered a capita improvement and <B>added to the basis of your house</B> to reduce any capital gain when you sell it in the future.</SPAN></P><P>If this is a <B>rental </B>property, the cost would be entered as an asset and depreciated over time.<BR /></P> Sat, 01 Jun 2019 20:23:41 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/no-if-this-is-your-personal-residence-the-cost-of-the-d/01/249932#M31173 IreneS 2019-06-01T20:23:41Z