Is the tax from building a detached garage deductible?

Forum|Forum|1 year ago
January 21, 2025
1 reply
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I recently built a large 40x60 detached garage/shop. My contractor’s bid included all applicable taxes. Can I deduct those taxes at my current state/county tax rate?

JohnB5677

Yes, you can deduct the sales tax on construction of the garage if all of these conditions apply:

You're itemizing. You have more total itemized deductions than the standard deduction.
You're taking the sales tax deduction, as opposed to the state/local income tax deduction.
The tax rate is equal to your state and local general sales tax rate.
You (or your contractor acting as your agent) purchased the building materials and paid the tax.

Please see TurboTax article Can I deduct the sales tax on home renovation or construction?

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