I bought vacant land to build a retirement home in the near future. Can I claim the interest paid on the loan?

[MargaretL]

No, you cannot deduct interest on land that you keep for you eventual use and some undermined time in the future or for a vacant lot that you intend to build a home on. 

However, you may be able to deduct some interest once constructions begins. 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's ready for occupancy. The 24-month period can start any time on or after the day construction begins. As a qualified home, the interest paid may qualify as deductible mortgage interest.