Sold land last yr. How do I come up w/ price of installation of 100s of ft of water lines & the clearing of the land 2 add 2 cost basis when I did the work myself?

lls12345 · ‎June 4, 2019

Vanessa · ‎June 4, 2019

Labor you perform yourself is not deductible whether it is an investment property or personal property. The cost of materials would be added to your cost basis increasing your basis in the property and decreasing your net profit at the time of sale.

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Vanessa · ‎June 4, 2019

Was this investment property?

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lls12345 · ‎June 4, 2019

No. I built my home on it and the home burned down.

Vanessa · ‎June 4, 2019

I am sorry to hear that. The cost of the materials would be added to the cost basis of your home, but personal labor is not able to be included or deducted.

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Vanessa · ‎June 4, 2019

Labor you perform yourself is not deductible whether it is an investment property or personal property. The cost of materials would be added to your cost basis increasing your basis in the property and decreasing your net profit at the time of sale.

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Sold land last yr. How do I come up w/ price of installation of 100s of ft of water lines & the clearing of the land 2 add 2 cost basis when I did the work myself?