What are you doing with the land? Building a home, investing, using it for business purposes, etc?
You cannot deduct interest on land that you keep for eventual use at some undermined time in the future or for a vacant lot that you intend to build a home on.
However, if you plan on building a home on it, you can claim the interest if the home is completed within 24 months. If this is your case, then you would include it in the mortgage interest section as if you did receive a form 1098. The interest would be recorded in box 1. Where do I enter my mortgage interest on Form 1098?
If the land is just for personal use, then the interest would not be deductible.
IRS Pub 936 Home Mortgage Interest
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
