Tax Deductions on home sale that is built by the owner?

I was the GC of my house build and worked on it for about 10 months until moving in. During the build there were certain tools that I had to purchase, some specific for the situation, while others are general construction tools. Since I was the builder, and had those as expenses, are they classified as a building

I was the GC of my house build and worked on it for about 10 months until moving in. During the build there were certain tools that I had to purchase, some specific for the situation, while others are general construction tools. Since I was the builder, and had those as expenses, are they classified as a building expense which subtracts from any profit from the sale? Question 2: Am I allowed to include my time (labor) as an expense, while it did not cost me anything in terms of dollars it is my time, which I want to put a price on for the hundreds of hours spent. Can this be done easily?

Other answer:

Wayne Z:
1) What happened with those tools afterwards? If you still have them, you can only deduct a small percentage of the tool and not the whole thing.

2) For tax purposes, your time has no value. You can't deduct anything for your own labor. Ignore the other answer that says that you can.

Time for a tax professional.

Edit: Yes. Fixed. You CAN'T deduct a dime for your own time.

For the tools, you could depreciate them for one year as you effectively converted them to personal use after the home was built. Tools are 5 year property; so I would go with 20%.

glenn:
In the USA you can not deduct your own labor. Think about the taxes before starting any future projects. If you own and live in this now and for next few years then any profit you make will be tax free anyway under current laws so you would not need tax deduction.
coraann:
No. Neither tools nor labor can be claimed on your tax return. You are a
private person, not in the construction business.
tro:
your hours are not deductible
all the costs of materials and equipment you need to build the house are your costs, you can claim the subcontractors you used but you cannot apply any monetary value to your time
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Bob:
yes you can deduct them using the "going" rate for labor
Judy:
mo
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