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June 1, 2019
Question

I bought a property in 2016 for new construction of primary home. Are the interest and points paid deductible?

  • June 1, 2019
  • 1 reply
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1 reply

MargaretL
Employee
June 1, 2019

Yes, you can  - construction loan interest can be deducted but you must move in within 2 years.

Per IRS: "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."