constructing a new home

Forum|Forum|3 years ago
November 16, 2022
1 reply
7 views

I currently own a home with a mortgage in OH. Building a new home in MD, have a construction mortgage since April 2022. Will be selling my current home when the new one is completed in 2023. How do I handle? Is the house being constructed defined as a second home until I sell my current home?

JandKit

Level 6

Hi Mr83,

This indeed would be considered a second home when completed. What that means for you is that you would be able to claim the mortgage interest and any other deductions associated with the home when filing the 2023 taxes

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mr83Author

Level 2

Thx. How is it handled for 2022? I am paying on a construction mortgage - payments go up as builder hits certain milestones. So the house will be under construction in 2022, and I am paying on that construction mortgage.