We own a home now will build a new primary home on the vacant land and move in once completed.
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Interest expense on vacant land is limited to 24 months prior to getting a regular home mortgage. The Property Tax on the land is deductible regardless, the remaining closing cost are not deductible but a cost of the property and should be kept track of for when the home is sold or rented at a later date.
The IRS FAQ and the IRS Publication 936, are using some of the same language however differing answers.
This is from the IRS Publication 2017, page 9 third column, https://www.irs.gov/pub/irs-pdf/p936.pdf
You build or improve your home and take out the mortgage before the work is completed. The home acquisition debt is limited to the amount of the expenses incurred within 24 months before the date of the mortgage.
Internal Revenue Code 163.
"Section 163(h)(3)(B)(i) provides that acquisition indebtedness is any indebtedness that is incurred in acquiring, constructing, or substantially improving a qualified residence and is secured by the residence. However, § 163(h)(3)(B)(ii) limits the amount of indebtedness treated as acquisition indebtedness to $1,000,000 ($500,000 for a married individual filing separately). Accordingly, any indebtedness described in § 163(h)(3)(B)(i) in excess of $1,000,000 is, by definition, not acquisition indebtedness for purposes of § 163(h)(3). "
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