traildude4u[at]yahoo.com wrote:

- quote -

You are allowed interest deductions on your main home
and one other home. There seems no requirement that
the home be in the US.

- quote -

Property tax?

- quote -

So, you're not elegible for the interest deduction on
your main home, because you don't own it.

- quote -

No.

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I have to disagree with Rick, you can deduct interest from
the mortgage of a second home if it is a "Qualified Second
Home." The Code does not distinguish between domestic or
foreign homes or mortgages. If you do obtain a foreign
mortgage, you will have to convert the foreign currency into
U.S. Dollar.

Here's what you need for the home to be a Qualified Second
Home:

1st, the loan must be secured by the home; and

2nd, the 2nd home is deductible if the proceeds are used for
"business, investment, or other deductible purpose."

A home is still a qualified second home if you rent it out
as long as you live in it for 14 days or 10% of the days it
is rented at Fair Market Value (FMV).

Check out this site. http://www.irs.gov/pub/irs-pdf/p936.pdf
Jennifer DeBoer

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Rick Merrill wrote:
- quote -

Oh really? Ever hear of secondary residence? One does
not have to first have an owned primary residence to be able
to deduct mortgage interest on a secondary residence, which
may even be a boat or RV with toilet and kitchen.

and what does AFIK mean?

- quote -

heck I don't even understand the first OR second question.

ChEAr$,
Harlan Lunsford, EA n LA
Fri, 14 Jan 2005

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traildude4u[at]yahoo.com wrote:

- quote -

Qualified mortgage interest includes your main home and a
second home. As your main home is in the US, the one in
Spain would be your second home. The fact that it is
located outside of the US has no bearing on whether you have
qualified mortgage expense. It also doesn't matter where you
obtain the mortgage. As long as you are able to meet the
definition (see IRS Pub 936 for details at:
http://www.irs.gov/publications/index.html) the interest you
pay would be deductible.

In addition, any real property taxes you pay would also be
deductible.

Naturally, any payments made in foreign currency would have
to be converted to US dollars.

--
Alan
http://taxtopics.net

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traildude4u[at]yahoo.com wrote:

- quote -

No tax deduction for anything that is not primary residence,
AFIK.

- quote -

If you what the mortage?-)

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I am thinking about purchasing a vacation home in Spain. Is
the mortgage interest deductable on my income tax? Are
there other tax breaks that may be available? Also, I am a
renter here in the US - does that have any impact upon my
taxes?

One final question - does it matter if I the mortgage here
in the US or in Spain?

Thanks for any information.

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