Can you deduct Cdn mortgage/charitable contributions on 1040

CdnAmerican · Post by **CdnAmerican** » Fri Dec 28, 2012 11:48 am

This is a simple set of two questions I suspect have been addressed previously on this Forum, but I could not find answers to them.

For a US Citizen living in Canada, if the USC wants to itemize deductions on the US tax return,

a) Can mortgage interest on the primary residence in Canada be deducted on the 1040?
b) Can contributions made to 'typical' Cdn charities (e..g, church, Salvation Army) be deducted on the 1040?

I think the answer to both is Yes, but the IRS documentation isn't quite definitive as far as I can tell. Is this correct?

Thanks!

nelsona · Post by **nelsona** » Fri Dec 28, 2012 12:14 pm

1. Sure. Why you would need to save money on your US tax return is a better question.

2. You need to be reporting Cdn income, and then only 20% of your Cdn income. It a treaty issue, so you would file an 8833 to explain this. Again, this is merely reducing your US tax, which CRA will thank you for.

CdnAmerican · Post by **CdnAmerican** » Fri Dec 28, 2012 12:32 pm

Thanks nelsona! That makes sense.