We bought a house in June of this year. It is under a construction loan for a full year ( we live in it now). We make interest only payments of 667.00 a month to the Bank. Is this tax deductable?
We will close the second time through a mortgage company next June.
Yes, you can deduct the interest paid. Interest on a home construction loan is deductible provided that the construction is completed within 24 months (see page 4 of the the attached link) which appears to be true in your instance.
Interest Only Mortgage Payments, Tax Deductable?
Leave a comment
Yah! The interest is the deductable part.
References :
all interest is tax deductable
References :
Yes – the interest payments are tax deductible. You will receive a 1099b with the amount paid from your bank at the beginning of 2007.
References :
Yes, you can deduct the interest paid. Interest on a home construction loan is deductible provided that the construction is completed within 24 months (see page 4 of the the attached link) which appears to be true in your instance.
References :
http://www.irs.gov/pub/irs-pdf/p936.pdf
It’s deductible, but the only the amount up to your tax liability. You probably will not get all interest back depending on the circumstances, but you could zero out your tax bill.
References :
Yes
But it’ reported to you on form 1098, not 1099b
References :
Yes it is a tax deduction. The construction of the home can be a tax dedution too. It will not be completly deducted on the first year, but it will be depreciated thru the life of the loan.
References :