Claiming Tax Benifit For Foreign Mortgage Interest

[abhijitz]

What is the name of your state? California

Hi

I am working at a Bay Area based IT Company for the last 3 years on work visa. This year i intend to do itemized tax deductions. I am single so my options are less. I pay mortgage for a property i have purchased at India. I was thinking of claiming the mortgage interest which i pay in INR [auto deducted from an Indian bank] and claim tax benifit in US. Am i permitted to do so under the tax laws ? Apart from this one, I do not own any other property in US or India.

Some tax consultants say i can claim and some say i cannot. I am bit confused here as to whose words should i be taking. I read the publications from the IRS site and it tells that a purchased property, if it is a second home, [considering my primary home is where i am staying, even if it is rented] and if that second home is not rented out or you earn any income from it, you will be eligible to claim tax benifits

Request your expert advise regards this matter.

[LdiJ]

Originally Posted by abhijitz

What is the name of your state? California

Hi

I am working at a Bay Area based IT Company for the last 3 years on work visa. This year i intend to do itemized tax deductions. I am single so my options are less. I pay mortgage for a property i have purchased at India. I was thinking of claiming the mortgage interest which i pay in INR [auto deducted from an Indian bank] and claim tax benifit in US. Am i permitted to do so under the tax laws ? Apart from this one, I do not own any other property in US or India.

Some tax consultants say i can claim and some say i cannot. I am bit confused here as to whose words should i be taking. I read the publications from the IRS site and it tells that a purchased property, if it is a second home, [considering my primary home is where i am staying, even if it is rented] and if that second home is not rented out or you earn any income from it, you will be eligible to claim tax benifits

Request your expert advise regards this matter.

If it is truly your second home, in other words a place where you reside for a portion of each year, the mortgage interest is deductible as a second home.