Where do I go to claim a tax break on building a h...
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hardin1998
New Member

Where do I go to claim a tax break on building a house out of pocket this year.

Where do I put in my receipts to claim a tax break on building a house without a loan.
2 Replies
Cynthiad66
Employee Tax Expert

Where do I go to claim a tax break on building a house out of pocket this year.

No, you cannot deduct the cost of building your house.  

You may be able to deduct:

Unless it's a rental, you won't be able to deduct homeowner's insurancerepairs, or home improvements. Also, moving expenses are no longer deductible for most taxpayers.

 

Be sure to hold onto your closing statement, as it lists expenses that could be deductible, like points and prepaid interest.

 

Also, start saving your home improvement receipts. You won't be able to deduct those right now, but they can reduce your gain (along with any capital-gains tax) when you sell in the future.

 

Opus 17
Level 15

Where do I go to claim a tax break on building a house out of pocket this year.

There are no "tax breaks" other than the property tax deduction.  However, save all your documents related to your expenses (materials and labor, cost of the land) because all those costs will reduce your taxable capital gain when you sell.  Your "tax break" is that, if and when you sell, you only pay tax on the profit, not the entire cost, as long as you can prove your costs.  So save proof of your costs for as long as you own the home, plus 6 years after you sell.   You don't get to claim a cost for your own labor, just materials and labor you pay for. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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