Hi,

I don't know if I have reached a correct place on ask me, nevertheless giving a try.

I am earning salary in US. I am planning to buy a house outside US (specifically, in India).
For this, I plan to take a loan. Firstly, can I avail of salary tax benefits when buying a house outside US.

Secondly, to avail of salary tax benefit on housing loan, should I take a loan in US or in India? I guess I should have an option to take a loan either in US or in India.

Please advise.

Thanks.
Chirag.

Also please note that this will be my first home I purchase.

If you are paying taxes on the U.S.-sourced salary as a resident alien (filing Form 1040), then you can claim the interest paid on your Indian home as an itemized deduction.

This assumes that ALL of your itemized deductions (state and local taxes withheld, real estate taxes paid, mortgage interest, charitable donations, etc.) EXCEED your standard deduction, which will be $5,450 if you are single or $10.900 if you are married and filing jointly.

Thank you for valuable inputs.
I refer to the following link:
Federal Housing Tax Credit for First-Time Home Buyers: Frequently Asked Questions

This being my first house, would I be eligible for tax credits?

Best,
Chirag.

If you are filing as a resident alien, you should be eligible for the credit.

However, the guidance is NOT CLEAR at this point in time. Also, note that you must PAY THE CREDIT BACK when you sell the house or incrementally at $500 per year for 15 years.