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Author: Renegadecj Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121482  
Subject: Tax Basis on New Home Date: 8/14/2001 9:40 AM
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My wife & I are building a new home. Since I am doing much of the work myself, how do I figure tax basis for future sale. Do I just need to track each and every expense (down to the nails), and the IRS will accept that? What about things such as chains for chainsaws, gas driving to and from the site during construction? I know an independent contractor could deduct these things.

Any help would be appreciated!
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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 53349 of 121482
Subject: Re: Tax Basis on New Home Date: 8/14/2001 8:36 PM
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My wife & I are building a new home. Since I am doing much of the work myself, how do I figure tax basis for future sale. Do I just need to track each and every expense (down to the nails), and the IRS will accept that? What about things such as chains for chainsaws, gas driving to and from the site during construction?

If you're planning on living in this home for the foreseeable and you're not in an area where real estate prices are obscene, I wouldn't worry about it too much. With the $500,000 exclusion of gain from sale of a primary residence on a joint return, the basis is often moot.

I suggest you keep a log of your travel and keep receipts for everything you buy. Throw it all in a box marked "basis" and forget about it until you need it, if you ever do.

Phil Marti

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