[pioneergal]

A friend was visiting in our home today and mentioned something that has created a question of concern in DH's mind.

We are building our home "out of pocket" no outside financing with a loan institution.
The question is .....
Should and if we ever decide to sell does this create a problem since there is no paper trail such as a title or etc.?

I have saved every receipt of purchased materials and etc in the building process.

Has anyone ever had a problem selling a home or homestead that you built?
Advice anyone?

 

[Old Vet]

The only thing is that you have is a deed. Nothing else will make any diference.

 

[woodsrunner]

I am currently buying materials with the intent of building myself one day. I keep a bound ledger book along with all reciepts. The ledger book helps me track expenses I don't have reciepts for. The reason I do this, after I build, should I ever decide to sell, the IRS is going to be there with thier hands out. I'm not going to give them even one cent more than they are entitled to.

Track every expense. I even keep track of the cars odometer reading when I go out buying. Think about it. Building this place I'm now a contractor. I'm entitled to vehicle expenses. At least as far as I'm concerned.

 

[Christiaan]

Keep all receipts for EVERYTHING you buy for building the house and any other buildings. These will all be capital improvements and are deducted from the sale price of the property should you ever sell. The IRS would get many thousands of dollars less in taxes, but you must be able to document what you have spent. Things they will disallow are ephemeral items, such as paint, flooring (except hardwood or ceramic tile, they are considered structural), appliances etc.