Can I take off mortgage interest remunerated on a Canadian home?
I am a US Citizen living and working in Canada. I purchased my home in 2007 and since I cannot reduce by the interest paid here in Canada, I thought conceivably I could get something on my U.S. taxes? But then again, does it even net sense if I have no US income?
Answers:
In most cases, you will be able to exclude your foreign earn income form US taxation - you will, naturally, have to pay packet Canadian taxes, which are usually higher.
If you have US income from other sources even while living out of the country that you need to pay taxes on, after you can itemize to reduce it. Nothing in IRS pub 936 (Home Mortgage Interest Deduction ) or pub 593 (Tax tips for citizens living abroad) suggests that a home must be surrounded by the US for mortgage interest to be deductible.
As a US citizen, you will report worldwide income on your tax return.
If you are using form 2555 to exclude all of your income, after you don't have a reason to itemize as your toll is already zero. If your tax bill is *not* zilch, then sure, you itemize anything you can to lower the bill.
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Answers:
In most cases, you will be able to exclude your foreign earn income form US taxation - you will, naturally, have to pay packet Canadian taxes, which are usually higher.
If you have US income from other sources even while living out of the country that you need to pay taxes on, after you can itemize to reduce it. Nothing in IRS pub 936 (Home Mortgage Interest Deduction ) or pub 593 (Tax tips for citizens living abroad) suggests that a home must be surrounded by the US for mortgage interest to be deductible.
As a US citizen, you will report worldwide income on your tax return.
If you are using form 2555 to exclude all of your income, after you don't have a reason to itemize as your toll is already zero. If your tax bill is *not* zilch, then sure, you itemize anything you can to lower the bill.
Related Questions:
How do I dance something like purchasing a home in need a mortgage, possibly making a brass set aside or short expenditure plan?
I am a first time homebuyer. First off, after going through frustration and headaches near the way the banks hold made it nearly impossible to obtain a mortgage I decided not...