Can I deduct the cost of my own labor on improvements I made to a second home?

betz60 · ‎June 1, 2019

I sold a secondary home in 2017 which I owned for 19 years. I have personally made about $20,000 in improvements over the years and don't know if I can deduct my labor.

BobinCT · ‎June 1, 2019

No you can't. Remember, if you had paid someone else it would give you credit (in the cost basis) but the other person would be paying tax on that. If you gave yourself dollar credit for your labor then it would make sense to also count that as taxable income, which would leave you back where you started..or worse.

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BobinCT · ‎June 1, 2019

No you can't. Remember, if you had paid someone else it would give you credit (in the cost basis) but the other person would be paying tax on that. If you gave yourself dollar credit for your labor then it would make sense to also count that as taxable income, which would leave you back where you started..or worse.