Updated over 9 years ago on .
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Landlord from Kentucky
If someone buys a house in poor condition and fixes it up for a rental and does all the work themselves...come take season does one depreciate on taxes the original cost of the house and the cost of materials? Or can they file on the new appraisal value of the house to recoup some of their expenses for swear equity?
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Your CPA is probably the best person to ask. As for labor, it's probably going to depend on how you operate your business. A friend with a waste removal company pays himself the same hourly wage he pays employees. I don't know how he claims it, but I'm sure his tax advisor does. There's so many variables and complexities to taxes that make it difficult to obtain appropriate guidance for your specific circumstances from this forum, or any forum for that matter. Your CPA can see the whole picture and guide you accordingly.
I hope that helps.