Claiming canadian loan interest in US
Moderator: Mark T Serbinski CA CPA
-
- Posts: 18
- Joined: Mon Jan 26, 2009 11:37 pm
- Location: Arizona
Claiming canadian loan interest in US
I bought a house in the US using an home equity loan from Canada. I would like to know how I can claim in my US tax the interest rate I paid last year. I live in the US in that house. How can I prove that I paid the intetest if I dont have any special receipt from the canadian bank? I appreaciate all your comments. Marvin
Actually, IRS rules allow ALL interest from mortgage or equity loans secured on your propierty to nbe usued towrds the mortgage deduction, regardless of what it was used for.
So, yes, you can.
So, yes, you can.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Just so we are clear, ALL interest from mortgages or home equity lines that are secured on your main or second home are eligible for the mortgage interest deduction. This would be whether the funds were used to by another home, investments, or bubble gum.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
-
- Posts: 18
- Joined: Mon Jan 26, 2009 11:37 pm
- Location: Arizona
-
- Posts: 18
- Joined: Mon Jan 26, 2009 11:37 pm
- Location: Arizona
The interest is deductible but not ALL as previously stated there are limits that apply if you file MFJ its up to $ 100,000 of debt if you file Seperate its $50,000 of debt so it may or may not be ALL of the interest you paid on the equity line and it depends on the FMV of the property less the amounts above. If your below this then ALL the interest is deductible if you are over only a portion.
JG
So, JG, you went from 0 deductible to $100,000 loan deductible. Care to go any higher?
The limit is only for loans NOT used to buy the first or second home.
In this case, since the equity line was used to buy second home, it can be said to be home acquisition loan rather than home equity loan.
Its a little grey area, but I'm quite sure that if they put ALL the interest, it will not be questionned.
The limit is only for loans NOT used to buy the first or second home.
In this case, since the equity line was used to buy second home, it can be said to be home acquisition loan rather than home equity loan.
Its a little grey area, but I'm quite sure that if they put ALL the interest, it will not be questionned.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Dear Nelsona
I did not go from 0 to 100%, I said it had to be secured by a mortgage, and seeing how the Cnd home is securing it I said that should be sufficient, it was a quick read and the equity line obviously was a mortgage backed loan. As for the 100K it is a grey area which I feel l applies be as it may it probably will fly but be as it may its grey not black and white but I am an accountant that would put it in as long as the client knows the facts.
No need to get nasty on this you pointed out a good argument that I agree the poster should take a shot why not.
I did not go from 0 to 100%, I said it had to be secured by a mortgage, and seeing how the Cnd home is securing it I said that should be sufficient, it was a quick read and the equity line obviously was a mortgage backed loan. As for the 100K it is a grey area which I feel l applies be as it may it probably will fly but be as it may its grey not black and white but I am an accountant that would put it in as long as the client knows the facts.
No need to get nasty on this you pointed out a good argument that I agree the poster should take a shot why not.
JG
So, just so we are clear: you said for interest dedutibility " it has to be secured by a mortgage on the property".
This was incorrect. It can be secured on either a first or second home. The property in question doesn't factor into it.
This was incorrect. It can be secured on either a first or second home. The property in question doesn't factor into it.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing