We refinanced our home to buy land for retirement. May we deduct the mortgage interest?

[MichaelL1 · Accepted solution]

The mortgage interest must be to build, remodel or maintain your existing home or 2nd home.

For tax years 2018 through 2025, you can only deduct the interest from the amount of your loan that was used to buy, build, or improve the home that it’s secured by.

If you’ve ever used part of this loan to pay for things other than this home, you cannot deduct the interest from that amount of the loan, even if the transaction didn’t take place this year.