I used a lump sum retirement income from a qualified 457 Plan to purchase a second home in 2016 which will be my permanent retirement home after I sell my primary home. In other words, one investment was used to pay for another. Is this deductible? Otherwise, I will get hit hard with taxes since the distribution is considered income but I used this distribution for a retirement home. Thank you.
No it is not deductible. and yes you will get hit with taxes. Sorry but that's the tax law.
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