DEDUCT SALES TAX ON REPLACING WOOD DECK WITH COMPOSITE DECK

[ddranalli]

I paid a contractor over $70K to tear down a wood deck and replace it with a composite (Trex) deck including new foundations, framing, decking, railing, etc.  Can I deduct the sales tax as a major home improvement?  If he didn't breakdown his charges by labor, materials, and sales tax paid on materials, is there a way that I can estimate it?

[MinhT1 · Accepted solution]

No.

In a lump sum contract, if the contract does not break down materials, labor and sales tax, then you can't deduct the tax.

Note that you can add the cost of the project to the cost basis of your home. This could help reduce capital gain when you sell the home.