This was a very helpful reply! I am in a similar situation.
We bought land in January 2021 and constructed a home on it that wasn't completed until 2022. Once it was completed in January 2022 we put it on the market. It is currently under contract. Do we consider this a second home or investment property?
How do we record this in 2021? Can we deduct interest and property taxes? Or do we save that deduction and capitalize it so we can deduct when determining our cost basis?
Can we deduct staging costs? lawyer fees? Are we able to deduct the cost of appliances, hardware (knobs, mirrors)? Thank you!!
