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auggie
New Member

We sold our house this year. We had to replace our working septic system to meet current state regs in order for buyer to get loan. Is it deductible?

 
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Rachel_W
Expert Alumni

We sold our house this year. We had to replace our working septic system to meet current state regs in order for buyer to get loan. Is it deductible?

No, replacing the septic system to meet current state regs is not a deduction on your Tax Return.  

However, you will add the cost of the septic system to the cost basis of your house, which will reduce your gain on the sale.

Check out the TurboTax FAQ below for more details on the sale of your home:

https://ttlc.intuit.com/replies/3300213

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1 Reply
Rachel_W
Expert Alumni

We sold our house this year. We had to replace our working septic system to meet current state regs in order for buyer to get loan. Is it deductible?

No, replacing the septic system to meet current state regs is not a deduction on your Tax Return.  

However, you will add the cost of the septic system to the cost basis of your house, which will reduce your gain on the sale.

Check out the TurboTax FAQ below for more details on the sale of your home:

https://ttlc.intuit.com/replies/3300213

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