DS30
New Member

Deductions & credits

It depends on the use of the land.

  • Interest on land can be deductible under mortgage interest if you intend to build a house on it. You can claim a mortgage interest deduction if you will be completing and moving into the home within 24 months of when you start claiming the write-off.
  • A lot that you own for your eventual personal use at some yet-undetermined time in the future isn't tax deductible.
  • If the land is held as an investment then you can deduct this interest as an investment interest expense.

To enter your investment interest expense in TurboTax Online (for TurboTax Online sign-in, click Here) or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Federal Taxes” tab
  2. Next click on “Deductions & Credits”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Retirement and Investments”
  5. Choose "show more", then Investment Interest Expenses and follow the onscreen instructions

To enter as Mortgage Interest (if applicable) in TurboTax Online or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Deductions and credits”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Your Home”
  5. Choose "show more", then Mortgage Interest and Refinancing and follow the onscreen instructions