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vickied723
New Member

Can I deduct interest paid for a construction loan when the construction loan is held by the builder.

 
1 Reply
HelenaC
New Member

Can I deduct interest paid for a construction loan when the construction loan is held by the builder.

Yes, you can deduct the mortgage interest paid to the builder on the loan as long as it was secured by the property you moved into. 

Per IRS Publication 936, page 4, Home under construction. 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. 

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