Tax Research Case

Scenario 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.

Requirements

Discuss the issue presented above. Your paper should be a maximum of 2 pages, 12-point font, double-spaced, 1-inch margins. You must cite primary tax authority sources as you discuss the issue. All assertions must be supported by properly cited tax sources. The paper must be concise.