Jasmine has lived in the same principal residence for 3 years. Recently she decided that she wants to own a second home on the beach. She intends to vacation at the new home for part of the year. Since she was not able to find the perfect beach home, she decided to purchase a parcel of land for $300,000 on which she plans to build her dream beach vacation home. She took out a loan to pay for the land, and the loan is secured by the land. She acquired the land in July, 2020 and began paying mortgage interest on the loan at that time. Construction on the vacation home also began in 2020. Jasmine has not yet decided when she will begin living in the home. You are preparing Jasmines 2020 individual tax return and are trying to maximize her deductions in accordance with relevant tax laws.

Tax research main point :

she can deduct the interest paid on the mortgage or not ?look up the rules for when mortgage interest can be deducted.is there a unique circumstance because the home is under construction, so not yet livable. Is mortgage interest deductible when the home is under construction? Use these for the tax memo

State the facts. (2-3 sentences; 1 point)

Identify the issue. (2-3 sentences; 1 point)

Authorities. (Cite primary authorities that are relevant to this case. You do not explain the authorities here, just list them. You will explain how each authority is relevant to this case in the analysis section; 3 points)

Analysis. (Interpret each tax authority referenced and explain how it relates to this case; 3 points)

Conclusion. (2-3 sentences; 2 points)