topic Const loan that was opened in 2020, but house was still under construction 12/31/20. I have a 1098 for interest pd on the const loan. Can I still report interest pd? in Education

Const loan that was opened in 2020, but house was still under construction 12/31/20. I have a 1098 for interest pd on the const loan. Can I still report interest pd?

bycook61 — Fri, 05 Mar 2021 14:43:01 GMT

MinhT1 — Fri, 05 Mar 2021 14:56:48 GMT

Yes, you can deduct the interest on the construction loan.

Please read this Community answer for more information.

Opus 17 — Fri, 05 Mar 2021 15:40:58 GMT

Interest on the construction loan can be treated as deductible mortgage interest as long as you meet 2 conditions.

1. You complete construction within 24 months.

2. At the end of construction, the construction loan is converted into a mortgage.

If you fail to meet either condition, you would have to go back and amend your prior tax returns to remove the interest deduction.