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Level 2
posted Feb 6, 2022 4:51:12 AM

I am building new home through a builder who got 2.5% interested of the home. The home is building now. I wonder whether I can claim 2.5% interest the builder took.

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1 Replies
Expert Alumni
Feb 6, 2022 5:01:54 AM

Yes, you can deduct the interest on your construction loan if the loan was secured by the property you moved into. 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 is ready for occupancy.