Qualifying for the Mortgage Interest Deduction. Mortgage interest includes that which you pay on loans to buy a home, on home equity lines of credit and on construction loans. The deduction is limited to interest paid on your main home and/or a second home. Interest paid on a third or fourth homes isn't deductible.
The statute of limitations on how far back the IRS can audit (called the Assessment Statute Expiration Date or ASED) varies depending upon the circumstances of the tax return. In most cases the IRS will not go back more than 3 years unless there is something very wrong with the tax return that was filed.
How far back can the IRS go to audit my return? How long does an audit take? What are my rights? How does the IRS conclude an audit? What happens when you agree with the audit findings? What happens when you disagree with the audit findings? Why am I being selected for an audit? Selection for an audit does not always suggest thereâs a problem.