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If we built a home do I put down both the land and also the house in separate ones?

Forum|Forum|7 years ago
June 1, 2019
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Best answer by Hal_Al

The interest is deductible and you should be getting a form 1098, reporting he interest to you.

A construction loan is considered "home acquisition debt" and the interest is deductible, even if the loan was partially used for land purchase. The refinancing loan interest is also fully deductible, unless the refinanced amount exceed the acquisition cost (land + construction).

Hal_Al

Employee

You don't usually report anything about building a home on your tax return

J

juliamjamesAuthor

I don't claim the interest I paid on the loan while building? Do I just claim the interest I paid after I refinanced the house when it was finished?

Hal_AlAnswer

Employee

The interest is deductible and you should be getting a form 1098, reporting he interest to you.

A construction loan is considered "home acquisition debt" and the interest is deductible, even if the loan was partially used for land purchase. The refinancing loan interest is also fully deductible, unless the refinanced amount exceed the acquisition cost (land + construction).