wrote:
A question came up over pizza the other night.

What are the tax consequenes of selling a homebuilt?

Assume we know how much the raw materials cost.
Assume we know approx how many hours of labor went into it.

Assume the homebuilt is worth $200K

If it is sold what are the tax implications?


Labor (unless you paid someone to do the labor)
has no bearing on the issue. You are presumably
doing this for recreation or education, that is,
not as a business. You have a capital gain on
the difference between what you spent on the
materials and the what you sold it for. If you
have a loss, however, that is not deductible.