Legal Question in Real Estate Law in California
Tax deduction for mortgage on a residential land
Hello,
I have residential land that I bought around Victorville CA with intention of building custom home but never started anything. Currently, I am not planning to build anything on it but I have $600 mortgage on the land. I was wondering if this can be used for the tax deduction.
Thank you in advance for your help.
1 Answer from Attorneys
Re: Tax deduction for mortgage on a residential land
As far as I know, you can take mortgage interest deductions on your primary residence, and usually on property you rent (where it becomes a business expense), but unless you are in the business of developing vacant lots, which you presumably are not, I don't think there is any IR Code or rule that would allow you to deduct this interest. Your question is probably better directed to a tax advisor (CPA or attorney) rather than real estate lawyers in general. We know the basics but not all the finer points.
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