New house construction - any Federal/State Deductions ?
posted at 1/1/2014 2:22 PM EST
We just finished construction on our new house (custom build).
Soon, it will be tax preparation time, so I wanted to ask what tax credits can be available to use ? We are in WA state, so you may not be familiar with local deductions.
Thank you for your time
Re: New house construction - any Federal/State Deductions ?
posted at 2/20/2014 3:17 PM EST
The only credit available for new construction is for the contractor/developer, if the construction meets certain energy efficiency standards. The only deductions would be any real estate tax adjustment where you paid the seller, if you bought the land or finished property during the year OR if you elect to deduct your state sales taxes, rather than your state income taxes, in which case, you may either track all of your sales taxes paid during the year and deduct the actual total of these taxes paid during the year OR you may use the IRS tables for your state and income level, to which you may add sales taxes paid on materials purchased to construct your residence IF AND ONLY IF you acted as the general contractor for the project.
Hope this answers your question and helps in preparing your returns.
Mark H. Misselbeck, C.P.A., M.S.T., Tax Principal
Katz, Nannis + Solomon, P.C.