Is Building an ADU Tax Deductible?

Is Building an ADU Tax Deductible?

Accessory Dwelling Units (ADUs) have become increasingly popular in recent years as a way to increase living space on a property.

One common question that homeowners have is whether building an ADU is tax deductible.

Building an ADU? know the Tax Deductions

In this blog post, we will discuss the tax implications of building an ADU and how Nestadu can help you navigate this process.

ADU Tax Deductions

ADUs are considered a separate dwelling unit on a property, which means that the expenses related to building an ADU may be tax deductible.

However, the specific tax benefits will depend on various factors such as whether the ADU is used for rental income or personal use, and if it meets certain criteria set by the IRS.

Rental Income

If you rent out your ADU, you may be able to deduct expenses such as construction costs, maintenance, and utilities on your tax return.

This can help offset the costs of building and maintaining the ADU while providing additional rental income.

Personal Use

If you use the ADU for personal use, such as housing a family member or as a home office, you may still be able to deduct certain expenses.

However, the rules for personal use deductions are more limited compared to rental income deductions.

Building an ADU

How Nestadu Can Help?

Nestadu specializes in building ADUs and can help you maximize the tax benefits of your ADU project.

Our team of experts will work with you to ensure that your ADU meets all the necessary requirements for tax deductions and provide guidance on how to claim these deductions on your tax return.

Whether you are looking to build an ADU for rental income or personal use, Nestadu can help you navigate the tax implications and make the most of your investment.

Contact Us

Ready to explore the tax benefits of building an ADU with Nestadu? Contact us today to learn more about how we can help you maximize your ADU project’s potential tax deductions.

Great news! You're in our service area.

Let's Connect

Unfortunately, we don't yet service your area

Sign up for our mailing list to learn
when we expand to your neighborhood