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posted Mar 7, 2024 2:47:30 PM

TurboTax for Home Mortgage - what date to use for "when did you buy the home" for Construction Loan. Purchased home in 1997, scraped lot and re-certified home Jan-2022 ?

Original purchase of home May 1996
Construction Loan Oct-2019
Tore down home late Nov-2019
Cert of Occupancy in Jan-2022
Rolled over to Conventional Loan Feb-2022
What date do we give for our current mortgage for "when did you buy the home" ???
Original Home Purchase date of May-1996

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1 Replies
Expert Alumni
Mar 10, 2024 4:19:19 PM

So long as the home becomes your main home or second home on the day it's ready for occupancy, you can deduct all the interest you paid on the construction loan within 24 months before the home was completed. 

 

TurboTax asks if you bought or improved your main home in 2023, which is not the case. The loan must be secured by the property in order for the interest to be deductible.

 

See this IRS FAQ for more information and links.