Yes, but not exactly. If it is rental property, that has been "placed in service", mortgage interest is deducted on schedule E with other rental expenses.
Otherwise, mortgage interest on unproductive investment property is only deductible to the extent of other investment income but is not subject to the 2% of AGI rule. It can be capitalized. (http://www.nolo.com/legal-encyclopedia/tax-deductions-vacant-lands.html)
The
carrying costs (e.g. insurance & utilities) of investment property are
deductible as investment expenses, but are subject to being a misc. itemized
deduction also subject to the 2% of AGI threshold. Real estate (property)
tax may be deducted on schedule A, under taxes, without regard
to the 2% rule.
Alternatively, taxpayers can elect to capitalize (add it to your cost
basis) the carrying costs of unimproved and nonproductive real property,
real property under development or construction and personal property before
its installation or use (Regs. Sec. 1.266-1(b)(1)). The election is
made with the tax return by its due date, including extension, by attaching a
statement. You cannot wait until you sell the property, but must make that
election each year. Attach the statement to the return and write “Filed
pursuant to section 301.9100-2” on the statement.
