DMarkM1
Expert Alumni

Deductions & credits

The interest paid on a loan for land purchase is not deductible as home mortgage interest since it is not secured by your main or second home.  To be a home it must have sleeping, cooking, and toilet facilities according to Publication 936.

 

You would not enter that form 1098 into TurboTax.

 

Once construction begins on a home on that land then the loan becomes secured by a home and deductible.  

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