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bthibodeaux83
March 4, 2025
Question

For Building materials- Can I claim sales tax for a new home construction if I had a builder?

  • March 4, 2025
  • 1 reply
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For Building materials- Can I claim sales tax for building materials on a new home construction if I had a builder? The builder purchased the building materials under his business name, and he then would make a draw on my construction loan to pay the invoice. So I did pay all the sales tax but it was done by reimbursement to the builder for the materials.

    1 reply

    KrisD15
    KrisD15
    March 4, 2025

    Yes if you paid the sales tax to the builder, you can claim that tax paid. 

     

    Be aware that the sales tax will then not be included in your property basis. 

    So if you paid the Builder 200,000, but 16,500 was sales tax, your basis would be 183,500.  That would only be a concern when you sell the home. 

     

    IRS LINK 

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