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.