If a taxpayer buys a new home and can't sell their old home, is there a time limit on how long they can treat the old home as a second residence and treat the mortgage interest as qualified residence interest?
Is there an event or a point in time where it becomes investment interest if the house is empty and held for sale?
What if they take it off the market, as in not actively pursuing buyers, but would gladly sell if one appeared?
The mortgage interest pub 936 mentions that a second home you don't live in at any time during the year will qualify as long as you don't hold it out for rent or resale at any time during that year. The resale mention trips me up a bit. Why not just sale rather than resale? Is that aimed at flippers or developers rather than homeowners? Or does that ultimately disqualify the homeowner, too?
Appreciate your thoughts.
Is there an event or a point in time where it becomes investment interest if the house is empty and held for sale?
What if they take it off the market, as in not actively pursuing buyers, but would gladly sell if one appeared?
The mortgage interest pub 936 mentions that a second home you don't live in at any time during the year will qualify as long as you don't hold it out for rent or resale at any time during that year. The resale mention trips me up a bit. Why not just sale rather than resale? Is that aimed at flippers or developers rather than homeowners? Or does that ultimately disqualify the homeowner, too?
Appreciate your thoughts.
Comment