interest

[Bettie Cheek]

T/p purchased land with the intent to build a strip center on it. The interest was on 4952 for two years and then she said she was going to build a house on it so the preparer she talked to put the interest on Schedule A for 2 years. This year I inherited the return and talked to her about it and she said she is trying to sell the property because she has decided not to build on it. The amount is a little obvious $24,000. It will definitely be missed on Schedule A. What to do with the obvious amount? Thanks for your help.

[Bees Knees]

Interest on land where you intend to build a house is personal interest prior to the time construction on the personal residence begins. If she is not going to call the land investment property and report the interest on the 4952, then the interest is non-deductible.