Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Taxes (https://www.askmehelpdesk.com/forumdisplay.php?f=320)
-   -   Deducting Mortgage Interest abroad in Islamic Finance? (https://www.askmehelpdesk.com/showthread.php?t=255241)

  • Sep 1, 2008, 02:49 AM
    dubaiguy
    Deducting Mortgage Interest abroad in Islamic Finance?
    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?
  • Sep 1, 2008, 01:04 PM
    AtlantaTaxExpert
    The "profit" is interest in the eyes of the IRS.

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

  • All times are GMT -7. The time now is 03:12 PM.