Comment by sokoloff

My reading of § 1.263A-1 is that construction labor must be capitalized.

§ 1.263A-1.a.3.A indicates that it's in scope: Real property and tangible personal property produced by the taxpayer

§ 1.263A-1.e.2 specifies that Direct Costs are subject to capitalization: Producers. Producers must capitalize direct material costs and direct labor costs.

(I'm just a taxpayer, not a tax lawyer or even an EA or CPA.)

What tax code references or treasury regulations did you find to support your belief that construction labor can be expensed in the year performed?