Deductability of Canadian Mortgage Interest on a 1040

Badger · Post by **Badger** » Mon Mar 12, 2007 9:13 pm

I returned to Canada last June from the US. I intend to file a 1040 MFJ and exclude my Canadian Income per form 2555 after I satisfy the 330 days.

My question is can I deduct the interest on my Canadian mortgage on my 1040 from June until the end of the year? I dont have any real property in the United States. if so how do I figure out the exchange rate for the US?

Thanks

nelsona · Post by **nelsona** » Tue Mar 13, 2007 8:59 am

There is no requirement that the homes eligible for mortgage interst deduction be in the US, so your Cdn interst is deductible.

You can use an average rate (easily obtainable from bank of canada site) for the period you paid the mortgage.