We don't have a record of the material cost since it was done by a builer. I guess my question is what can we deduct from having our house built on a loan aside from mortgage interest? We paid the bank 400 for "construction fee" and 200 for "origination fee"(they're not stated on our 1098 so I'm not sure of their deductibility). We didn't pay any "points". Thanks..
2007-02-13 00:07:42 · 5 answers · asked by grace 1 in Business & Finance ➔ Taxes ➔ United States
If you purchased the construction materials yourself, you may deduct the sales tax that you paid if you opt to deduct sales taxes instead of state income taxes. If you paid a contractor who purchased the materials, you do not get the sales tax deduction.
The various fees on your closing statement may be used to adjust your cost basis. This will reduce your gain on sale. They are not otherwise deductible. Since you didn't pay any points,nothing from the closing statement is deductible.
2007-02-13 01:05:23 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 2⤋
Your builder included in his cost any sales tax that he paid on the materials. You can not claim his expenses as a deduction on your return. If you had purchased the materials yourself then you would be able to.
When you sign a contract with the builder if he separately stated what he charged you in sales tax for the materials you would.
But most contracts do not separately state sales tax
Loan Orgination fees or Points, Real Estate or Property taxes are other deductions that are available for deduction
Publication 600
Publication 936
1-800-829-1040
2007-02-13 00:24:08 · answer #2 · answered by Anonymous · 2⤊ 1⤋
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2016-12-04 03:08:11 · answer #3 · answered by Anonymous · 0⤊ 0⤋
you can deduct your interest that you paid on the construction loan.
2007-02-13 00:11:08 · answer #4 · answered by kissybertha 6 · 0⤊ 2⤋
Contact your local H&R Block office, you will have people that can give you the right answer...
Good Luck,
2007-02-13 00:13:02 · answer #5 · answered by semi273hemi 4 · 0⤊ 5⤋