topic I took a personal loan from my credit union to pay for land in Get your taxes done using TurboTax

I took a personal loan from my credit union to pay for land

azhighs — Mon, 09 Mar 2026 06:27:58 GMT

Re: I took a personal loan from my credit union to pay for land

DoninGA — Wed, 02 Feb 2022 20:41:37 GMT

Personal loans and interest paid on personal loans are not reported on a tax return.

Re: I took a personal loan from my credit union to pay for land

Mike9241 — Wed, 02 Feb 2022 20:46:37 GMT

what was the purpose of buying the land?

Re: I took a personal loan from my credit union to pay for land

azhighs — Thu, 03 Feb 2022 01:49:09 GMT

The land purchase was for the building of my primary residence.

Re: I took a personal loan from my credit union to pay for land

JulieS — Thu, 03 Feb 2022 03:11:10 GMT

You can deduct any real estate taxes that you paid, but you can't deduct interest on a personal loan to buy land, at least until construction begins.

Here is an excerpt from the IRS website on this topic:

"Question: I have a mortgage for land that I intend to build a home on. Can I deduct the interest for the mortgage?

Answer: No, you can't deduct interest on land that you keep and intend to build a home on. However, some interest may be deductible once construction begins. 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's ready for occupancy. The 24-month period can start any time on or after the day construction begins. As a qualified home, the interest paid may qualify as deductible mortgage interest, with certain limitations."