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

posted

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

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