<parrisbraes...[at]yahoo.ca> wrote:

- quote -

See Housden v. Commissioner, 63 TCM 2063 (1992), where a
Canadian citizen that was a resident of the U.S. was
required to withhold tax on interest payments to a Canadian
bank. That case dealt with a personal loan rather than a
loan secured by real estate. However, the fact that a loan
is secured by real estate located in another country does
not change the source of the income. Some treaties do
reduce the 30% withholding tax rate to zero. However, the
India treaty only reduces the rate to 15%.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

jma...[at]andrewmitchel.com wrote:
- quote -

I believe that as the mortgage is executed in India and is
for a property located in India, the treaty and IRC would
not apply. Admittedly, this treaty isn't my area of
expertise but in this care, the execution of the loan is in
a foreign country. If the loan was executed in the United
States, I would expect that IRC would apply.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

dspwhiz <soumit.mukher...[at]gmail.com> wrote:

- quote -

I agree with Lanny & Ira with regard to deductibility. In
addition, since you are a U.S. resident paying interest to a
foreign person, you are subject to U.S. withholding tax on
the interest paid (see IRC sections 881(a)(1) and 1442). I
believe that the statutory rate of 30% would be reduced to
15% under the Article 11 of the U.S.-India Income Tax
Treaty. You also need to file Form 1042.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

"L K Williams" <lanny[at]loxinfo.co.th> wrote:
- quote -

You can deduct the mortgage interest on up to two properties
on Schedule A. The house in India does not have to be the
primary residence.

Ira Smilovitz

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

spwhiz <soumit.mukherjee[at]gmail.com> wrote:

- quote -

Interest and property taxes are deductible whether or not
the property is in the US. Where to deduct on your return
depends upon the use of the property. If you are living and
working in the US, it seems unlikely the house is your
primary residence but, if members of your family live there,
it could be treated as such. Unless, of course, you have a
principal residence in the US.

If the house is rented out, you must claim the rental income
and deduct your expenses on Schedule E.

Perhaps you should seek professional assistance with your
taxes, if you are not sure of your choices.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

I have bought a house in India on Loan and paying 11% tax
on it. Can I claim any tax benefit as I am repaying the
loan from my monthly salary here.

It will be nice if someone suggest me.

Thanks
Soumit

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >