Can the mortgage interest on Land intended to build a 2nd Home be deductible?

bookkeeping · #1 (**permalink**) 04-08-2008, 09:39 AM

I already owe a primary residence but I have a second mortgage for a plot of land that I intend to build a 2nd home on.

Would I be able to deduct the interest on the second mortgage?

BTW, nice change on the Site!

TaxGuru · #2 (**permalink**) 05-02-2008, 11:24 PM

The IRS tax codes states specifically that "unless the taxpayer has begun construction of a home on the bare land that would be occuppied within 24 months, the interest that is paid by the taxpayer on the second mortgage would not qualify as deductible mortgage interest."

Please refer to "Publication 936, Home Mortgage Interest Deduction" for a more detailed discussion on this subject.