Self-Construction Law and Legal Definition

According to 26 CFR 1.44-5 (Title 26 - Internal Revenue; Chapter I - Internal Revenue Service, Department Of The Treasury; Subchapter A - Income Tax; Part 1 - Income Taxes; Normal Taxes And Surtaxes; Determination Of Tax Liability; Credits Against Tax; Credits Allowable Under Sections 30 Through 45d), the term self-construction means “the construction of a residence (other than a factory-made home) to the taxpayer's specifications on land already owned or leased by the taxpayer at the time of commencement of construction. Thus, where a taxpayer purchases land and either builds a residence himself or hires an architect and a contractor to build a residence on that land, the taxpayer has “self-constructed” the residence.”