You may want to amend your tax return to see if the interest will make a difference on your tax return; if it doesn't impact your refund, then there's no need to amend it. If it does, you should amend. If your return has been submitted- please wait - if it's
rejected for some reason, you can add your interest and re-send the return. If your return has been submitted and accepted- you will have to
amend; the return is mailed; takes about 16 weeks to process. Here are amending
instructions.
However, I would like to point a few issues with the interest deduction on the land; I hope it will help you determine if you even need to try amending:
Issue number one: You cannot
deduct interest on land that you keep for you eventual use and some undermined
time in the future or that you intend to build a home on. However, some interest may be
deductible once
constructions begins. 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's ready
for occupancy. The 24-month period can start any time on or after the day
construction begins. As a qualified home, the interest paid may qualify
as deductible
mortgage interest:
- Federal Taxes
- Deductions & Credits
- Your Home
- Mortgage Interest, Refinancing and
Insurance
Issue number two: You can deduct
interest on land that you purchased for investment. It is deductible as investment expenses; limited to the investor's net investment income
for the year. Any excess interest not deducted in the current year is carried
over to future years.
- Federal Taxes
- Deductions & Credits
- Retirement and Investments
- Select Investment
Interest Expenses
