USA Is DYI work in a flat I rent out deductible

[Musari]

Hi,
I'm filling in my american tax return.
I own a flat that I partly renovated myself before putting it up for rent.
I purchased materials for the renovation and I believe I can deduct that from the income I get by renting the flat.
But could anyone tell me whether I can deduct an amount for the work that I have done myself ?
If yes, could you tell me how to estimate the amount to charge for my DYI work?
Cheers,
Tim

 

[bklynboy]

You cannot deduct your own labor. Even if you could and this is an LLC, you would cut a check to yourself from the LLC - but any deduction you get would be offset by your having to declare personal income so net impact is no reduction in taxes (and may actually go up since the loss on K1 is limited to no more than 25K and perhaps less depending on your AGI).

I don't recommend it and just chalk it up to sweat equity you will recover when you sell the property.

 

[Musari]

OK. Thanks!