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Category: Tax
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Experience:  CPA with tax experience.
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We built a new 2-car deatched garage over a one-year period.....October

Resolved Question:

We built a new 2-car deatched garage over a one-year period.....October 2009-October 2010. Final payment was made to the contractor in March 2010. IS this tax deductable, and in what year?

Thank you!
Submitted: 5 years ago.
Category: Tax
Expert:  JKCPA replied 5 years ago.

Thanks for your question.

If this is your personal home and not investment or business property, it would not be deductible. However, this is considered an improvement which adds to your adjusted basis of the property. If you later sell the property, the amount you paid for the garage has the effect of reducing any gain you may have on the sale of the property.

Let me know if this is rental or business property and I will give you the appropriate procedure of that type of property.

Best regards,

Customer: replied 5 years ago.

Hi JK...


It is a personal home. I just had my taxes done today by a profesional and won't get my forms until tomorrow. I was just wondering how he treated this expense? So there was no direct effect on my taxes this year?

Expert:  JKCPA replied 5 years ago.
Unfortunately, there would not be any direct deductions for your garage addition expenses for 2009 or 2010 on your tax return.

However, you might qualify for a Residential Energy tax credit if you added qualifying energy efficient items such as insulation, solar panels, solar water heater, etc. For more info, see,,id=214979,00.html
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