It depends on the use of the land.
- Interest on
land can be deductible under mortgage interest if you intend to build a
house on it. You
can claim a mortgage interest deduction if you will be completing and
moving into the home within 24 months of when you start claiming the
write-off.
- A lot that
you own for your eventual personal use at some yet-undetermined time in the future isn't tax
deductible.
-
If the land
is held as an investment then you can deduct this interest as an
investment interest expense.
To enter your investment interest expense in
TurboTax Online (for TurboTax Online sign-in, click Here) or Desktop, please follow these steps:
- Once you are in your tax
return, click on the “Federal Taxes” tab
- Next click on “Deductions
& Credits”
- Next click on "jump to
full list" or “I’ll choose what I work on”
- Scroll down the screen until
to come to the section “Retirement and Investments”
- Choose "show more",
then Investment Interest Expenses and follow the onscreen instructions
To enter as Mortgage Interest (if applicable) in TurboTax
Online or Desktop, please follow these steps:
- Once you are in your tax
return, click on the “Federal Taxes” tab ("Personal" tab in
TurboTax Home & Business)
- Next click on “Deductions and
credits”
- Next click on "jump to
full list" or “I’ll choose what I work on”
- Scroll down the screen until
to come to the section “Your Home”
- Choose "show more",
then Mortgage Interest and Refinancing and follow the onscreen
instructions
