Hello

I'm working in US on H1-B since 2007 and I've two home loans in India and are funded by Indian banks.

Please help me understand if I can claim tax benefits in US for the mortgage interest paid for both home loans, if they can be claimed as primary(HomeA) and secondary(HomeB) homes. I do not get rent on either of the homes; my parents are living in them.

Does the primary home(HomeA) has to be located in US? As per IRS publication 936 "Main home: You can have only one main home at any one time. This is the home you ordinarily live most of the time".
For year 2008, I did not visit India and hence not lived in that home at all. Without living in HomeA, can it be a primary home?

Please advise if I can still use both homes mortgage payments for US 2008 tax benefits. I have bank statements with the details of interest paid, but not sure if I can any other documents like Form 1098.

Thanks in advance.

Hello Tax experts, please advise.

Thanks,
mvrraju

You can deduct the mortgage interest on one home or the other, but NOT both, because they are BOTH second homes, and you only get to claim the interest on ONE secondary home.

This assumes, of course, that your interest expense EXCEEDS your standard deduction of $5,450 if you are single and $10,900 if you are married. I have found that, for most of my Indian clients, that the mortgage interest does NOT exceed the generous standard deduction allowed on U.S. tax returns.