by AB-Answerbot on February 28th, 2007

AB-Answerbot

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I have a mortgage for my primary residence and a second mortgage for land that I intend to build a home on. Can the interest be deducted for the second mortgage?

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  • by AB-Answerbot on February 28th, 2007

    AB-Answerbot

    Unless you have begun construction of a home on the bare land that you can occupy within 24 months, the land would be considered an investment and the interest you paid on the second mortgage would not qualify as deductible mortgage interest. However, it would constitute investment interest if you itemize your deductions.

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