Can Owners Labor Add To Cost Bases On Rehab?

If I am rehabing houses myself, Can I add my labor to the cost basis after I sell, and at what value ? What a great site!

Comments(6)

  • AdamR617th March, 2004

    Good thought but unforunately you can't.

  • DaveT8th March, 2004

    Your labor is contributed free of charge.

  • InActive_Account8th March, 2004

    No but consult your accountant and attorney.

  • jfslenes9th March, 2004

    Easiest thread ever to answer.

    No.

    It's called sweat equity.
    [addsig]

  • hbomb89th March, 2004

    If you're intersted in more info. Look in IRS publication 527. Here's a snippet:

    Additions or improvments. Add to the basis of your property the amount an addition or improvement actually cost you, including any amount you borrowed to make the addtion or improvement. This includes all direct costs, such as material and labor, but not your own labor. It also includes all expenses related to the addtion or improvement.

  • ekzeteo9th March, 2004

    THANKS GUYS

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