How can we calculate sweat equity for fixing our own home?

My parents are buying a house for my husband (who is a contractor) and I to fix up as an investment and double as a home for us - They want to have a calculated dollar amount for all the labor we put into the house - they will pay for supplies - my husband will do the work - what would be the best way to come up with number?

The only thing I could come up with it. Take what you paid for the house(or what it would have sold for on the open market if it is a special sale). Subtract the materials. Then what it is worth with all the improvements. What value you added minus the materials they bought is the sweat equity of the labor.

this is a ticklish question filled with lots of nooks and crannies for brunt fingers and bad feelings on both sides of the thanksgiving table.
suggest you pay your parents a fair and reasonable rent for the property with written paper work. your husband in turn provides his services at a fair , written and agreed upon price.
this sound harsh But it give EVERone solid understanding of their part in this drama.
no one gets their implied understandings hurt.
Thanksgiving dinner taste great then.
NOTE until the mortgage and deed are in you and husband name. YOU don't own , just rent no matter the words said or implied.

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