Hi, I have a question about the home loan deduction. I was in F-1 and OPT in 2005 the entire year. And I am supposed to file 1040NR. I bought a house in Oct. 2005, and received form 1098 for loan interest and points paid. Are they tax deductable? In the schedule A of 1040NR where I do my itemized dedution, I can not find a place for home loan deduction. I heard from friends that home loan interests are all tax deductable. Would you please tell me where I can do the deduction?

Sorry, you cannot deduct the interest reported on Form 1098 if you are filing as a non-resident alien.

Hopefully, you will be able to file as a resident alien in 2006 and you can claim it then.