I am presently living in Dubai where I am considering buying a house.

I understand from some of the other blogs that so long as that house is my first home or second home, the loan is secured against the home, there is a true debtor creditor relationship, I'm legally legally liable for the loan, and pay the payments myself, then I can deduct as mortgage interest as I would my first home in US.

However, in Dubai, when taking on a home loan through Sharia Compliant (Islamic Finance) lenders, the "interest" is referred to as "profit". Will that difference in nomenclature cause any issues in deducting that as mortgage?

AtlantaTaxExpert

The "profit" is interest in the eyes of the IRS.

All you need is some documentation to show how much "interest" was paid.