Question

Deductions for purchasing land and building home to reside in

Forum|Forum|3 years ago
April 11, 2023
1 reply
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I purchased land and paid a construction company to build a home in Washington state. I paid for both in full with cash. Is there anything I can deduct for taxes this year?

M

MinhT1

If you have paid them in 2022, you can deduct as Itemized deductions property taxes, mortgage interest, mortgage points.

Please read this TurboTax article about Home ownership deductions for more information.

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W

wit324Author

I do not have mortgage interest or mortgage points as I paid for both the land and house build using cash. Can I itemize the sales tax for the building materials and labor? If so, would this be more beneficial than filing my taxes using the standard deduction?

DaveF1006

it depends if your itemized deductions exceed your standard deduction amount. Here are the standard deductions amount for 2022. $25,900 for joint filers, $19,400 for heads of household, and $12,950 for single filers and those married filing separately.

If the sales tax does not exceed the standard deduction amount, then it is more advantageous to claim the standard deduction.

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