topic Home construction loan? in After you file

Home construction loan?

colkenmor — Wed, 05 Jun 2019 00:34:53 GMT

How do I treat home construction loan interest if I pay it but then get reimbursed that amount by the builder (until construction is complete)? Do I just ignore it since it is a wash? Or do I claim the interest as a deduction and then have to report the reimbursement as income?

whose name is the loan in? who has title to the property?

Anonymous — Wed, 05 Jun 2019 00:34:55 GMT

whose name is the loan in? who has title to the property?

Loan is in my name and wife's name; we have title to the...

colkenmor — Wed, 05 Jun 2019 00:34:56 GMT

Loan is in my name and wife's name; we have title to the property (had to close up front before construction began)

I would treat it as a wash. For one thing for mortgage (c...

MichaelL1 — Wed, 05 Jun 2019 00:34:59 GMT

I would treat it as a wash.

For one thing for mortgage (construction loan) to be deductible, you have to itemize on your taxes, and with the new increased standard deduction of $24,000 for married couples, you may not be able to do that.

Just keep good records for your tax file, for whatever you decide to do.

Of course if the builder issues you a 1099-INT, and they...

TomYoung — Wed, 05 Jun 2019 00:35:01 GMT

Of course if the builder issues you a 1099-INT, and they might, then you're pretty much forced to report that income and take the itemized deduction, which may or may not be of any benefit if the standard deduction is higher.

Builder says there will be no IRS reporting, so will prob...

colkenmor — Wed, 05 Jun 2019 00:35:03 GMT

Builder says there will be no IRS reporting, so will probably treat it as a wash. We exceeded the standard deduction.