Fix and Flip Personal Labor Repairs - Can you claim them for tax?

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I found a deal for a fix and flip.  I am wanting to do 90% of the work myself to save reno costs.  For capital gains taxes, how can I charge my personal time to the cost for renovation?

Ex. ARV - $161k

Reno-$16k (if contracted out)

Desired Profit: $30k

Holding costs : $1100/month

Time of reno: 2 months

Time to sell: 2 months

Say I want to bill my time out at $30/hour, is there a way that I can claim that?  I keep track of time for current projects and all material costs associated with itemized renovations.  Or do I have to subcontract that and have a physical bill/receipt?

Thank you for the help!

Okay thank you. But if I use a contractor, and have a bill etc from them, that can all be deducted from profit, correct? What if I set up an LLC and billed my time out to that?

  

Thank you Wayne

Unless you're planning on committing tax evasion, you're not going to accomplish what you're looking to do, you'll just be moving money from one tax form to another.

Originally posted by @Cameron Wright :

Okay thank you. But if I use a contractor, and have a bill etc from them, that can all be deducted from profit, correct? What if I set up an LLC and billed my time out to that?

  

Thank you Wayne

You can do that, but then the LLC will have to pay taxes on the construction bill.

What you are trying to do doesn't make sense, otherwise every entrepreneur would bill their company for their time and deduct it from their profit. You can pay yourself a paycheck out of a company account, but then you have to pay payroll taxes...more than you would otherwise pay.