ADU expenses

[ppulickal]

We were planning to build an ADU and spent some money for it's prep work for Structural and Design drawings, Geotech testing etc. Spent over $7000. Later we found out we our property is not able to handle the ADU due to the soil structure. Can we write off these expenses on my tax return?

[Opus 17]

Unfortunately, that's not tax deductible.  It might be considered a property "improvement" that you can include in the cost basis of your home. That may reduce your capital gains when you sell.  

[ppulickal]

Thank you for your reply.