Tax question - interest on lot deductible

[kbkids]

Yes, I know I'm cutting it down to the wire getting these taxes done. Quick question - we've got a lot that we will be begin building on this year. It was purchased and financed last year. The bank has sent me a 1098 for this loan. Is this interest really deductible?? It's just a lot right now. I know first and second homes are - but a lot only??

 

[budbeerlady]

In Mi, we did deduct the interest paid on our property before we built. It was the only piece we owned. And the measly $23 we paid in property taxes. Too bad I wouldnt be content to live in a tent for 50 years on vacant land!

 

[kbkids]

In Mi, we did deduct the interest paid on our property before we built. It was the only piece we owned. And the measly $23 we paid in property taxes. Too bad I wouldnt be content to live in a tent for 50 years on vacant land!

Wow! $23?? I just wrote a check for $350 for the property taxes on this lot!! And I thought we lived in a pretty inexpensive part of the country. The property taxes on our current house were $1050

 

[Ava83]

I think it is deductable here in Illinois also (same situation)