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You can deduct any real estate taxes that you paid, but you can't deduct interest on a personal loan to buy land, at least until construction begins.
Here is an excerpt from the IRS website on this topic:
"Question: I have a mortgage for land that I intend to build a home on. Can I deduct the interest for the mortgage?
Answer: No, you can't deduct interest on land that you keep and intend to build a home on. However, some interest may be deductible once construction begins. 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's ready for occupancy. The 24-month period can start any time on or after the day construction begins. As a qualified home, the interest paid may qualify as deductible mortgage interest, with certain limitations."
Personal loans and interest paid on personal loans are not reported on a tax return.
what was the purpose of buying the land?
The land purchase was for the building of my primary residence.
You can deduct any real estate taxes that you paid, but you can't deduct interest on a personal loan to buy land, at least until construction begins.
Here is an excerpt from the IRS website on this topic:
"Question: I have a mortgage for land that I intend to build a home on. Can I deduct the interest for the mortgage?
Answer: No, you can't deduct interest on land that you keep and intend to build a home on. However, some interest may be deductible once construction begins. 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's ready for occupancy. The 24-month period can start any time on or after the day construction begins. As a qualified home, the interest paid may qualify as deductible mortgage interest, with certain limitations."
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