I am building a new home (about 40% finished) and closed on a construction loan in 2016. Can I deduct mortgage interest,points and sales tax on materials?

[MargaretL]

Yes, you can; construction loan interest/points can be deducted but you must move in within 2 years.

Per IRS: "You can treat a home under construction as a qualified home for a period of up to 24 months, but only if it becomes your qualified home at the time it is ready for occupancy. The 24-month period can start any time on or after the day construction begins."

Mortgage interest paid data entry: 

1. Federal Taxes
2. Deductions &Credits
3. Your Home
4. Select Mortgage Interest and Refinancing

You may also deduct sales tax:

1. Federal Taxes 
2. Deductions and Credits
3. Scroll down to Estimates and Other Taxes Paid, select sales tax