Hello,
I moved to the US about 2 months ago (2012) and I'm with J1 VISA.
I'm planning to buy house soon and I'd like to know:
1) if I can deduct the motgage interest from the tax
2) if I can apply for exemption on property tax

Thanks

On J1 till you are resident for tax purpose, you get itemized deduction. Mortgage interest and property tax are not deductible.

Thanks for your quick answer

What is an 'itemized deduction'?


Just to confirm...

Do you mean that interest from mortgage on the first house are not deducible in general? Or only for the J1?

I thought that if I lived in your house I'd get an exemption (pay less) on the property tax.
Is this not applicable only to the J1?

Resident can claim standard deduction or itemized deductions. Tax payer claim itemized deductions only when the total itemized deductions are more than standard deduction.
Residents can claim mortgage interest deduction as itemized deduction. Your U.S. Tax Return: Itemized Deductions (http://taxipay.blogspot.com/2008/05/itemized-deductions.html)