Subject:  sales tax?
From:  Harriet Schneider
Date:  Fri, 14 Jan 2000

If you build a new home, is sales tax on the materials bought to build the home with deductible?

Answer

Date:  19 Jan 2000

Hello Harriet,

No, sales taxes are no longer deductible.

You may add the sales tax for materials to build a home to your tax basis for determining the gain or loss when you sell the home.

Good luck!
Mike Gray

We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.

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