I built a vacation home with a builder and sold it two years after completion. My main home is in Texas, the second home was built in Arizona. Costs for construction of the home and costs for closing of the sale are clearly deductible. There are some costs related to construction that I'm not sure are deductible. Given that the build was remote, we had required bi-monthly meetings with the builder on-site, where we would review the work done to date and instruct the builder to make various changes to the build components or options. These on-site builder meetings required us to travel back and forth from Texas to Arizona.

My question is are these travel costs for builder meets deductible for the calculation of capital gain. I've had one consultant say yes because all costs associated with the home build are deductible, another said no because travel is not listed as a covered deduction. Looking for someone with knowledge on this.

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    When you say "consultants" do you mean "experts in tax knowledge"? Because if so we are probably not going to be able to give a better opinion. Commented Feb 18 at 19:07

1 Answer 1


we had required bi-monthly meetings with the builder on-site

The key word is "we". The IRS may argue that it was unnecessary.

That said, if you have a written opinion of a licensed tax practitioner (EA/CPA/Attorney), then you can rely on it and demand the practitioner covers any penalties resulting from you acting on their advice (through their E&O coverage).

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