No, you can't deduct interest on land that you keep and intend to build a home on. However, some interest may be deductible once construction 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, with certain limitations..Follow the steps here to enter mortgage interest in TurboTaxFor more detailed information, you can refer to TurboTax's guide on deducting mortgage interest.

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amwoody

Question

Are we able to deduct the mortgage interest on some land we purchased in 2024 as well as the mortgage interest on our primary residence?

Forum|Forum|1 year ago
April 6, 2025
1 reply
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SabrinaD2

No, you can't deduct interest on land that you keep and intend to build a home on.

However, some interest may be deductible once construction 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, with certain limitations..

Follow the steps here to enter mortgage interest in TurboTax

For more detailed information, you can refer to TurboTax's guide on deducting mortgage interest.