Deducting Mortgage Interest abroad in Islamic Finance?

dubaiguy · #1 Sep 1, 2008, 01:49 AM

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?



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