In 2022 and 2023, We built our personal home. I have my own licensed construction company LLC here in SC. My wife and I got a construction loan to build our personal home and all payments from the loan were paid directly to my company. The whole job was licensed and permitted through my company. We paid the construction loan interest every month with our personal account. Most of the materials and payments were made through my company accounts but we had to use some of our personal accounts/credit cards to continue due to funding deficits. We then wrote company checks to ourselves to reimburse us when the funds became available. During the build, we were strapped for time, and had to move homes several times so a lot of receipts were misplaced. And we didnt have time to fully account all spending. So each year, we did our best to deduct the proper amount of material expenses. But now that we are moved in, we have deep searched and now have accurate numbers. We want to ammend our taxes for 2022 and 2023 because the numbers are pretty different and we well overpaid taxes each year. Upon reasearching it seems that writing off personal home building materials isnt allowed. I couldnt find info with building personal home through your own company and funding goes to company. My question is how do I proceed:
1- account for construction loan funds as Gross revenue through my company and claim all materials perchased to complete the job as material deductions?
2- Do not claim the construction loan funds as gross revenue since it was a personal loan going towards a personal project and do NOT claim materials as a deduction?
3‐ Account for construction loan funds as Gross revenue through my company and am NOT able to claim materials purchased as a deduction?
Obviously #3 would be a major issue as I would be liable for taxes on roughly $500k income. Am very scared of option 3 for obvious reasons. Thank you for your time and help
