Interest Expense deductible for Immigrant Investor Program?
Moderator: Mark T Serbinski CA CPA
Interest Expense deductible for Immigrant Investor Program?
Not sure if anyone knows how this works. Basically, you give the bank $120k and then they take that as a fee\interest for putting up the money for 5 years for the IIP. Can this interest cost be deducted as an investment expense?
Normally in order to claim investment expenses against income the interest paid should have been for an outlay that produces investment income. In your case you have given them a deposit and they will take that as a fee for their security over a period of time. The way it is structured it will not be an interest cost but rather a fee. You may be able to claim this fee as a business expense straight line over 5 years against any business related income but if it is merely for your personal residency then it is not a business related expense and surely can not be claimed as interest.
JG