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Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses)

Question: I have a mortgage for land that I intend to build a home on. Can I deduct the interest for the mortgage?

Answer:

You can treat a home under construction as a qualified home for a period of up to 24 months, but only if it becomes your qualified home at the time it is ready for occupancy.  The 24-month period can start any time on or after the day construction begins. As a qualified home, the interest paid within certain limitations may qualify as deductible mortgage interest.

Additional Information:


Category: Itemized Deductions, Standard Deductions
Subcategory: Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses)

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The OMB number for this study is 1545-1432.
If you have any comments regarding this study, please write to:
IRS, Tax Products Coordinating Committee
SE:W:CAR:MP:T:T:SP
1111 Constitution Avenue NW
Washington, DC 20224