Live in and fix up strategy

[Aaron Edmondson]

I am Living in my house and Remodeling it, getting it ready to rent out and then I will buy another fixer upper.

I need some advice on a strategy to be able to use all the materials in the remodel as a tax write off.

I know you cant write off materials if its your primary residence, and since Im living in the home while I remodel, Its primary.

And these are very invasive remodel work, Full inside and outside paint plus siding, windows, kitchen and bath remodels, things I cant just swing by and do while it has a renter in. They would move out with all the construction going on, just to get the tax benefit...

So I KNOW all of you have the right answer for me. ;)  thanks guys.

I feel like there should also be a way to write off all the hours I put into it. It sounds to me like I need to have a Construction business. If just for tax purposes to be able to write off the tools I buy, the materials and the hours I work... I just dont know how this unfolds and im stumped.

[Chris Seveney]

@Aaron Edmondson are you paying yourself to do the work? If not why should you get a write off? Not only will you not get a write-off but you will get taxed when you go to sell it on the feta between what you have into it and what you sell it for. Unless you pay yourself a W-2 income those hours cannot be deducted from your capital gains You are allowed a $250k exemption but that depends on if you had other properties and if you continue to do this eventually you will pass the $250k Note not an accountant or offering tax advise ?