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.
While it is unwelcome news for most, the truth is that the IRS typically has up to three years to select a return to audit. However, if the agency suspects you of committing fraud to prevent paying owed taxes or you did not file a return, there is no time limit and you could receive an audit notice after three years.According to the IRS, most audit notifications occur within the first two years after filing.owever, if the agency suspects you of committing fraud to prevent paying owed taxes or you did not file a return, there is no time limit and you could receive an audit notice after three years. According to the IRS, most audit notifications occur within the first two years after filing.