I am building a home (primary residence, new construction). There are no loans involved. What deductions can I take during this process?
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New Member

I am building a home (primary residence, new construction). There are no loans involved. What deductions can I take during this process?

 
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Level 9

I am building a home (primary residence, new construction). There are no loans involved. What deductions can I take during this process?

Property taxes paid.
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Level 15

I am building a home (primary residence, new construction). There are no loans involved. What deductions can I take during this process?

The cost of building materials to build your new home is not deductible. Instead, it’s part of the cost basis of purchasing your home which you will use when you sell it.

But if you paid sales tax on the building materials, and you itemize your deductions, that may be deductible. You would add the sales tax to the general sales tax table amount for your area.Your total sales tax would have to be higher than your state and local income taxes. Plus, your total itemized deductions must be higher than the new increased 2018 Standard Deduction.

You would enter the amount from your receipts under Federal Taxes/Deductions and Credits.

  • Scroll down to Estimates and Other Taxes Paid.
  • Choose Sales Tax and continue.
  • Choose Easy Guide (see screenshot).
  •  On the Major Purchases screen, say yes.
  • Enter the type as Building Materials.

  • Continue all the way through the section.
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Level 15

I am building a home (primary residence, new construction). There are no loans involved. What deductions can I take during this process?

You may also be entitled to a federal tax credit if you used energy-efficient materials in constructing the home.
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