Homeowner remodels bathrooms, loses tax advantage

DEAR BOB: We are in the process of selling our home. About five years ago, my son and I remodeled the two bathrooms. I have the receipts for tubs, toilets, etc. But how do I place a value on our personal labor? We spent eight straight weekends, Saturdays and Sundays, working together. Would $25 per hour be fair? --Curtis R.

DEAR CURTIS: I'm sure you and your son did excellent work on those two bathrooms. But Uncle Sam values your personal labor at zero. You can add the cost of materials purchased for those bathrooms as capital improvements to your home.

Purchase Bob Bruss reports online.

However, you cannot add anything for the value of your personal labor. For full details, please consult your tax adviser.

(For more information on Bob Bruss publications, visit his
Real Estate Center).

Copyright 2006 Inman News