new primary home under construction

Forum|Forum|2 years ago
March 18, 2024
2 replies
52 views

In 2023 i lived in my primary home which I owned and was building a new primary home which will be completed in 2024. As far as turbo tax is concerned, do I list them both as a primary residence?

RobertB4444

Level 15

For 2023 you don't have to put anything on your tax return about the house you're building except any mortgage interest or property taxes that you paid. And in those cases the house you are building is not your primary home. It's a second home. It will be your primary after you move into it.

@a089592

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Opus 17

Level 15

Only the home where you live most of the time is your primary residence. You might change your primary residence in mid-year (such as when the new house is finished) but you can only have one at a time.

You can deduct property tax on all real property you own in the US, up to the SALT cap. The property doesn't even have to be your main residence.

You can deduct mortgage interest on your main home and one second home. The home under construction can be your second home and you can deduct the interest on your construction loan, provided that you complete construction and move in within 2 years from starting, and that the construction loan is converted to a mortgage after construction is finished. (If it takes more than 2 years to build the home, or if you don't convert the construction loan to a mortgage, then the construction loan interest is not considered deductible mortgage interest.)