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Jennifer has been living in her current principal residence for three years. Six months ago,...

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Accounting

Jennifer has been living in her current principal residence for three years. Six months ago, Jennifer decided that she would like to purchase a second home near a beach so she can vacation there for part of the year. Despite her best efforts, Jennifer has been unable to find what she is looking for. Consequently, Jennifer recently decided to change plans. She purchased a parcel of land for $185,000 with the intention of building her second home on the property. To acquire the land, she borrowed $185,000 secured by the land. Jennifer would like to know whether the interest she pays on the loan (before construction on the house is completed) is deductible as mortgage interest. a. How should Jennifer treat the interest if she has begun construction on the home and plans to live in the home in 12 months from the time construction began? b. How should Jennifer treat the interest if she hasn't begun construction on the home but plans to live in the home in 15 months? c. How should Jennifer treat the interest if she has begun construction on the home but doesn't plan to live in the home for 37 months from the time construction began?

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