I contracted to have a modular home placed on my property
for my primary residence. I did much of the work outside of
the contract and paid for the materials myself. I
contracted the garage framing, but finished it myself.

I built a large trex deck, a small back deck, poured a
garage floor & apron, installed a water softener and UV
purification system, did my own stone work around the
fireplace, sided the garage, installed the garage windows,
etc.

So I guess in general, all the of the items were purchased
"to facilicate construction of a new dwelling".

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Thanks, Paul! I am not testing knowledge of the new law,
nor did I know there even was a new law. The money I spent
was for my primary residence, not an investment/rental.

I'm not entirely clear on what you mean when you say I can
deduct the sales tax "instead of state & local income taxes
paid as an itemized deduction". Do you mean if I deduct
the sales tax I can no longer deduct my state and local
taxes? Could you clarify and/or provide a reference to the
new law you refer to? Based on the list I provided above,
would most/all of the stuff qualify?

Thank you VERY much!! Your assistance is greatly appreciated!

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Paul A Thomas wrote:
- quote -

Nawwww. they're just confused. Really.

How many clients will swear this year they read that
"you can NOW deduct home improvements" ? (grin

ChEAr$,
Harlan Lunsford, EA n LA

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"elvl4[at]hotmail.com" <elovell[at]gmail.com> wrote:

- quote -

What exactly did you buy them for??

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"elvl4[at]hotmail.com" <elovell[at]gmail.com> wrote

- quote -

You don't say if these expenses/improvements are for rental
or other investment property, so I'll go with they are for
your personal house.

For 2004 tax year, you may deduct the sales tax you paid
instead of state & local income taxes paid as an itemized
deduction (Schedule A).

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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"elvl4[at]hotmail.com" <elovell[at]gmail.com> wrote
- quote -

I've seen a couple of these types of posts. Makes you
wonder if someone is testing the knowledge of the new law.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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In 2004, I purchased a number of things which before I pay
2004 taxes I'd like to be sure there's no tax benefits. I
believe some or all would classify as capital improvements.
A partial list: trex decking, lumber, water softener, UV
water purification system, mesh rebar, concrete, vinyl
windows, stone for fireplace, vinyl siding, etc.

Is there any way the $ spent on this stuff benefits me in
regards to my 2004 tax liability? I paid a lot of sales
tax, is there any way this is legitimately written off? I
installed stuff myself, so I didn't pay tax on labor.

Thanks for any advice.

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