The inspection of our septic system failed. We had the department of health mandate that we replace it. Can we deduct the cost of the design & replacement.

johnarens95 · ‎June 1, 2019

IreneS · ‎June 1, 2019

No - If this is your personal residence the cost of the design & replacement of your septic system is is considered a capita improvement and added to the basis of your house to reduce any capital gain when you sell it in the future.

If this is a rental property, the cost would be entered as an asset and depreciated over time.

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The inspection of our septic system failed. We had the department of health mandate that we replace it. Can we deduct the cost of the design & replacement.

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The inspection of our septic system failed. We had the department of health mandate that we replace it. Can we deduct the cost of the design & replacement.

The inspection of our septic system failed. We had the department of health mandate that we replace it. Can we deduct the cost of the design & replacement.