Const loan that was opened in 2020, but house was ...
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bycook61
New Member

Const loan that was opened in 2020, but house was still under construction 12/31/20. I have a 1098 for interest pd on the const loan. Can I still report interest pd?

 
2 Replies
MinhT1
Expert Alumni

Const loan that was opened in 2020, but house was still under construction 12/31/20. I have a 1098 for interest pd on the const loan. Can I still report interest pd?

Yes, you can deduct the interest on the construction loan.

 

Please read this Community answer for more information.

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Opus 17
Level 15

Const loan that was opened in 2020, but house was still under construction 12/31/20. I have a 1098 for interest pd on the const loan. Can I still report interest pd?

Interest on the construction loan can be treated as deductible mortgage interest as long as you meet 2 conditions.

1. You complete construction within 24 months.

2. At the end of construction, the construction loan is converted into a mortgage.

 

If you fail to meet either condition, you would have to go back and amend your prior tax returns to remove the interest deduction. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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