The short answer
You cannot deduct the value of your own unpaid repair labor as a rental expense. Actual qualifying costs may receive different treatment depending on whether the work is a repair, improvement or another type of expenditure.
On this page
Keep costs separate
Retain materials receipts and invoices for hired work. Identify the property, project and business purpose. Do not create an expense by assigning yourself an hourly rate and adding it to the books.
Review the project as a whole
A small component of a larger renovation may need different treatment from an isolated repair. Give your preparer the project description and supporting documents rather than only a category selected in software.
Example: replacing a faucet
You spend $140 on materials and four unpaid hours doing the work. The four hours do not create a $200 deduction at an assumed $50 rate. Ask your preparer how the actual $140 cost should be treated.
References and next steps
Use these references for the specific topic they cover. Local requirements and individual circumstances may differ.
Written and maintained by the Rentari team. Examples explain a decision; they are not customer results. This is general education. Confirm the rules and treatment for your property with a qualified local professional. Found an error or an unclear step? Send a correction with this page's address and the detail to review.
Your next step
Choose and review a report