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 the interest be deducted 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:

Publication 936, Home Mortgage Interest Deduction

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

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Washington, DC 20224

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