Howie asked:


I am US resident but I am planning to buy a home in another country because I travel overseas a lot. I am getting loan from either US bank or local bank out side of US. Can I deduct my mortgage interest on my US tax return?

WILBERT

2 Responses to “Can I get tax deduction from my overseas property morgage?”

1. v b on October 27th, 2009 7:16 am

   If the loan is secured by the property, you can deduct the interest for up to 2 properties. The location is not an issue.

2. bostonianinmo on October 29th, 2009 4:09 pm

   Mortgage interest on a principal residence or second home is deductible as long as the property secures the loan. There is no requirement for the property to be located in the US.

   If you get the money from a US bank, make SURE that the property actually secures the loan! US banks normally don’t make mortgage loans in foreign countries for a number of legal reasons. A US loan that isn’t secured by the foreign property would not qualify as a mortgage and would not be deductible.

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