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Anything I can do for tax breaks next year while building a house?

Posted on 3/20/15 at 10:01 pm
Posted by HoLeInOnEr05
Middle of the fairway
Member since Aug 2011
16834 posts
Posted on 3/20/15 at 10:01 pm
We just broke ground, and the house should be finished by September. Is there anything that I should do so that I can have write offs next year? Or am I completely nuts for thinking this is possible?
Posted by Ton Chou
On the Levee
Member since Feb 2010
757 posts
Posted on 3/22/15 at 12:16 pm to
If you are subbing out yourself and pay for all materials directly, you can deduct the sales tax.

Eta: this is a year where your sales tax should exceed state income tax. You can deduct sales tax for everything you purchase directly.
This post was edited on 3/22/15 at 12:19 pm
Posted by swanny297
NELA
Member since Oct 2013
2189 posts
Posted on 3/22/15 at 3:06 pm to
Look at what qualifies for energy credits - windows, doors, heating/cooling units etc.
Posted by Rev1897
NOLA
Member since Dec 2008
782 posts
Posted on 3/22/15 at 4:59 pm to
Construction loan counts as mortgage interest too, right
Posted by Rust Cohle
Baton rouge
Member since Mar 2014
1947 posts
Posted on 3/22/15 at 7:15 pm to
Put everything on a credit card, for the points! But really it lets everything ride for a month. It helps when a sub wants his pay, but the bank hasn't given you your draw for his work done.
Posted by Jabstep
Member since Jul 2014
2131 posts
Posted on 3/22/15 at 8:57 pm to
I don't know that financing any part of new home construction via credit card is solid advice regardless of the potential awards. Just my opinion.
Posted by hungryone
river parishes
Member since Sep 2010
11987 posts
Posted on 3/23/15 at 10:25 am to
quote:

I don't know that financing any part of new home construction via credit card is solid advice regardless of the potential awards. Just my opinion.


He wouldn't be financing his new home construction via credit card...merely using the CC as the purchasing device which will be paid off using draws from the construction loan (the actual financed portion). As long as his overall credit utilization isn't too high, this is a great strategy to earn points/rewards from a CC.

Dunno what the OP thinks he can "write off" regarding new home construction. A dedicated home office (used for no other purpose) can help you to qualify for a home office deduction (though a bunch of other rules apply to the HO deduction).
Posted by GFunk
Denham Springs
Member since Feb 2011
14966 posts
Posted on 3/23/15 at 3:34 pm to
quote:

hungryone
quote:

He wouldn't be financing his new home construction via credit card...merely using the CC as the purchasing device which will be paid off using draws from the construction loan (the actual financed portion). As long as his overall credit utilization isn't too high, this is a great strategy to earn points/rewards from a CC. Dunno what the OP thinks he can "write off" regarding new home construction. A dedicated home office (used for no other purpose) can help you to qualify for a home office deduction (though a bunch of other rules apply to the HO deduction).


It takes discipline that the majority of folks simply don't have. But its a really solid strategy if you've got the draws coming in and you want to keep the subs moving and happy, which is key.
Posted by hungryone
river parishes
Member since Sep 2010
11987 posts
Posted on 3/23/15 at 4:14 pm to
quote:

It takes discipline that the majority of folks simply don't have.

Over and over again, this is the litany I hear on this board: most people can't handle credit cards. Yes, some people do get into trouble. But if the OP's credit is solid enough to qualify for a construction loan, then his credit obviously isn't a shambles. So he must be managing things adequately, no?

The whole "fear of credit card" mantra is getting old. Almost as tedious as the constant refrain on this board about women being terrible with money. Generalizations and sweeping blanket statements.....

Information/data/knowledge is the antidote for fear. Don't blindly adhere to the "avoid CC" foolishness if you actually possess self control and planning skills.
Posted by Teddy Ruxpin
Member since Oct 2006
39584 posts
Posted on 3/23/15 at 4:20 pm to
PAY YOUR FAIR SHARE DEADBEAT

Just kidding, good luck on the house.
This post was edited on 3/23/15 at 4:21 pm
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