Ask Experts Questions for FREE Help !
Ask
    dubaiguy's Avatar
    dubaiguy Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Sep 1, 2008, 02:49 AM
    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?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Sep 1, 2008, 01:04 PM
    The "profit" is interest in the eyes of the IRS.

    All you need is some documentation to show how much "interest" was paid.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Finance - effective rae of interest [ 1 Answers ]

Mr. Jones borrows $2,000 for 90 days and pays $35 interest. What is his effective rate of interest? The answer I got was $7.0%... is that correct?:confused:

Mortgage Interest [ 1 Answers ]

Can someone claim your mortgage interest on their tax?

I want to finance a property that can't get a mortgage [ 1 Answers ]

It's a simple cottage in a flood plain. The flood plain part doesn't bother me because I know both the land and the water in question. I also know better than to keep anything of any worth in such a home. I can easily afford monthly payments, but the property won't qualify for a mortgage, and my ex...

View more questions Search