Does one seize excise exemption for a mortgage on a home owned out of the country?
Hi,
I am a "resident alien". My home country is India.
Do I get an exemption or tax credit for the mortgage I take-home pay on my home in India? Indian tax law gave me an exemption. US tax law do so if I had a home here. But its not clear whether I can get an exemption if the home is within India.
Thanks
Ankush
Answers:
You may include the interest you paid on Form Schedule A, Itemized deductions.
The mortgage interest is deductible if it is secured by your major home, or your second home. It must be a mortgage in your name. Only the interest salaried is deductible. There is no requirement that the home must be in the USA.
If you do not own a home in the US, afterwards there is no mortgage interest on your main home. Your second home would be contained by India, and your mortgage interest is deductible.
If your home in India, is rented to others, then you stipulation to follow other rules. It is considered business property if you are renting it to others while you live here in the US.
The real estate taxes that you salaried are generally also deductible on Schedule A
Be sure to see if you qualify for the Foreign Tax Credit
http://www.irs.gov/taxtopics/tc856.html
Good luck Source(s): IRS Publication 936 Home Mortgage Interest Deduction
http://www.irs.gov/publications/p936/ind…
http://www.irs.gov/publications/p936/ar0…
Related Questions:
Am I too ripened to qualify for a first-time buyer's home mortgage?
I'm almost 47 years old, a single mom, and looking to purchase my first house. I'm wondering whether I'll be able to get hold of a twenty-year mortgage because of my age, or should I try to find a 15-year mortgage? I'll...
I am a "resident alien". My home country is India.
Do I get an exemption or tax credit for the mortgage I take-home pay on my home in India? Indian tax law gave me an exemption. US tax law do so if I had a home here. But its not clear whether I can get an exemption if the home is within India.
Thanks
Ankush
Answers:
You may include the interest you paid on Form Schedule A, Itemized deductions.
The mortgage interest is deductible if it is secured by your major home, or your second home. It must be a mortgage in your name. Only the interest salaried is deductible. There is no requirement that the home must be in the USA.
If you do not own a home in the US, afterwards there is no mortgage interest on your main home. Your second home would be contained by India, and your mortgage interest is deductible.
If your home in India, is rented to others, then you stipulation to follow other rules. It is considered business property if you are renting it to others while you live here in the US.
The real estate taxes that you salaried are generally also deductible on Schedule A
Be sure to see if you qualify for the Foreign Tax Credit
http://www.irs.gov/taxtopics/tc856.html
Good luck Source(s): IRS Publication 936 Home Mortgage Interest Deduction
http://www.irs.gov/publications/p936/ind…
http://www.irs.gov/publications/p936/ar0…
Related Questions:
Am I too ripened to qualify for a first-time buyer's home mortgage?
I'm almost 47 years old, a single mom, and looking to purchase my first house. I'm wondering whether I'll be able to get hold of a twenty-year mortgage because of my age, or should I try to find a 15-year mortgage? I'll...