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building a tiny guest cottage (about 200' sq). i've ordered 1-by shiplap from our local lumber yard and will have it in about 2 weeks. in the meantime, i have to decide whether they'll remove stock or not.

planning on installing the shiplap at a 45 along the lower third of the walls, then finishing the top 2/3s with sheetrock. will use 1x4 trim as baseboard and trim on top of the shiplap.

here's my dilemma; the sheetrock is 1/2 or, at best, 5/8. the shiplap is 3/4. i have to trim around a window and 3 doors.

do i shim the sheetrock to protrude from the wall 3/4? and would i do that by attaching 1/8 furring strips to all the studs? or do i have the lumber yard plane the stock down to 5/8?
 

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You could use 1x (which is 3/4") - either plain stock or something with a profile - as a transition strip. By running the boards at 45* you will want something to cap the end grain.
 
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