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New Member
posted Feb 8, 2020 12:33:09 PM

Can i write off a tiki hut and bar we built in our backyard

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1 Replies
Employee Tax Expert
Feb 8, 2020 1:00:06 PM

No, these are personal expenses.

 

However, when you eventually sell your home, you can factor these items into the cost basis of your home to determine the overall gain/loss on the sale of your home.

 

Please see page 8-9 in the attached link to help you determine which costs would qualify. Also, make sure you retain the applicable records to show the amount you paid for improvements.

 

IRS publication - Home sales