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I baught some unimproved land upon which I may build a house someday. May I deduct the interest on the money I borrowed?

April 26, 2017baught borrowed build deduct House land money someday unimproved

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I baught some unimproved land upon which I may build a house someday. May I deduct the interest on the money I borrowed?

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You can’t claim a mortgage interest deduction because you have no second residence on the land and no current plans to build one. But you can treat the land as investment property and deduct the interest under the normal rules that apply to investment interest. You will remain free to later convert the land to residential use.