So far no one has asked about the property's zoning and subdivision potential. If this is in an area where your neighbors own no more than five acres, and you could sell off parcels of that size, it would make a difference in how IRS and a judge would look at all "the facts and circumstances." On the other hand, if all of your neighbors have 160 acres and don't claim to be farmers or woodcutters, that also is critical information. Please, don't tell us. Our minds are made up.
I have yet to see a mortgage document that does not also attach its lien to improvements added to the real estate later. If you have one, it's a rare bird. The question you are asking is no different from someone buying a one-bedroom house with a mortgage and then adding another three bedrooms, a pool and a detached garage. Of course all of the interest is still deductible.
I have yet to see a mortgage document that does not also attach its lien to improvements added to the real estate later. If you have one, it's a rare bird. The question you are asking is no different from someone buying a one-bedroom house with a mortgage and then adding another three bedrooms, a pool and a detached garage. Of course all of the interest is still deductible.
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