No. If at some point you do build a home, it can be added to the basis. Cost Basis is the purchase
price plus buying costs (fees you paid in connection with the purchase such as
legal fees, abstract fees, survey charges, owner's title, etc.) plus
improvements, minus depreciation.
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 begin.
