Hello,
I liked the way you explained in great detail (though it was some years back 😊).
I have a situation as follows:
- Land was purchased in 2008 by taking a loan, say $100. Interest of $20 was paid on that loan from 2008 to 2012.
- In 2012, loan was taken for construction of the home, say $250. From the date of the loan, till the construction was completed, interest on such loan was paid, $12.
- None of this interest was deducted in any of the tax returns between 2008 to 2013.
- Question:
Can the interest paid, that is, $20 + $12 be added to the cost basis of the primary home for computing the gain / loss upon sale?
Thanks.
