I got a construction loan in 2021 and didn't deduct interest until the home was completed in April 2022. Can I claim the 2021 construction loan interest in 2022?

[carriveaua]

I heard I had to wait until the home was completely built before claiming the construction loan interest, but wanted to verify.

[Opus 17]

No, interest paid in 2021 would be deductible on your 2021 income tax. You can file an amended 2021 return if it would result in an additional refund.

A construction loan for a home is deductible if it is converted to a mortgage when the home is completed and if the home is completed within two years of taking out the construction loan. but this does not mean that you delay deducting the interest. The interest must always be deducted in the year you actually pay it. Then, if the home fails to be completed on time or the construction loan fails to be converted to a mortgage, the interest deduction must be removed from the prior tax return by amending.