We bought a plot of land to build a house on. We hope to be able to sell our primary residence in two years when we have finished in the new house. No its not going to take 2 years to build the house.
1. While the house is being built, and lets say there was loan was taken out to build, so there is interest, is this consider a investment expense or like with a current residence you just right off the interested paid on the loan.
2. How is capital gains from the sell of our original house applied to the new house if it was already purchased with the intent of it being your new residence?
3. The land is being purchased January 2022. What do we need to be aware of for reporting our tax returns for 2022?
4. I think I read that any improvements to the land, expenses - building the house, drilling the well and installing the septic and pool are taking into consideration for the capital gains when the new house is sold again, correct? What if the house is never sold, but is inherited? Are those improvement expenses still counted?
