Yes, you will be able to claim the loan interest and property taxes on this land that you home is located on.
To enter as Mortgage Interest in TurboTax Online
(for TurboTax Online sign-in, click Here , then select
"Take Me to My Return") or Desktop, please follow these steps:
- Once you are in your tax
return, click on the “Federal Taxes” tab ("Personal" tab in
TurboTax Home & Business)
- Next click on “Deductions and
credits”
- Next click on "jump to
full list" or “I’ll choose what I work on”
- Scroll down the screen until
to come to the section “Your Home”
- Choose "show more",
then Mortgage Interest and Refinancing and follow the onscreen
instructions
It is OK to show
your land loan interest expense as mortgage interest under the 1098
section of Schedule A. Just keep document about this deduction with your tax records. That way, it you are
contacted by the IRS, you will just need to provide an explanation of your
situation (that your mortgage interest is related to the land your home is located on and provide the IRS with the details of this loan).
