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Level 2
posted Mar 13, 2023 10:57:38 AM

Sale of Tiny Home on trailer

I built a tiny home on a trailer last year by myself. It cost me 40,000 in construction materials. I sold it for 86,000.

Can I include my labor and the rent to use a warehouse to build it in my cost basis. Are there any other taxes beside capital gain that I might owe? I never lived in it.  I live in Oregon

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1 Best answer
Expert Alumni
Mar 13, 2023 11:37:51 AM

No, you cannot take credit for your labor cost.  Your own labor is never tax deductible, nor can it be added to the cost of an asset you own.

 

No, you cannot include rent in your cost basis.

If you have a business, you could have depreciated the trailer for its warehouse function.

Or if you did pay rent, you could deduct it from your business, but it would become income to the rented trailer.

1 Replies
Expert Alumni
Mar 13, 2023 11:37:51 AM

No, you cannot take credit for your labor cost.  Your own labor is never tax deductible, nor can it be added to the cost of an asset you own.

 

No, you cannot include rent in your cost basis.

If you have a business, you could have depreciated the trailer for its warehouse function.

Or if you did pay rent, you could deduct it from your business, but it would become income to the rented trailer.