Create an LLC to build a home?

[Zoomazoom]

If I build a home as a person, I build a home. If I build a home as a business, can I write off the expenses of the business (a vehicle, a salary for a family member to manage it, costs of materials)? Can the business then sell the house to an individual and realize any tax benefit?

 

[Just Blue]

If I build a home as a person, I build a home. If I build a home as a business, can I write off the expenses of the business (a vehicle, a salary for a family member to manage it, costs of materials)? Can the business then sell the house to an individual and realize any tax benefit?

What state? Is this home for you/family to live in?

 

[Zoomazoom]

What state? Is this home for you/family to live in?

Florida. And yes for me and my family. Don’t want to do anything illegal, just want to be as shrewd as the next guy.

 

[davew9128]

No you can't.

 

[Taxing Matters]

If I build a home as a person, I build a home. If I build a home as a business, can I write off the expenses of the business (a vehicle, a salary for a family member to manage it, costs of materials)? Can the business then sell the house to an individual and realize any tax benefit?

Here's the deal. First, you're apparently simply planning on building a home for yourself rather than being in the home building & contracting business. Your costs in material and payments you make to contractors (but not the cost of your own labor) to build the home would be additions to your basis in the property. You won't get tax deductions for that. Second, forming a single member LLC to do it wouldn't change the tax treatment of this at all for you.

If you want to be financially savvy here, make sure you keep good records of everything you spend in constructing the home, look to make sure you are getting quality construction at a competitive price, and don't put in lots of features in the house that don't add much to resale value unless they are things you really, really want and will use for yourself for an extended period of time.