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    milawi's Avatar
    milawi Posts: 1, Reputation: 1
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    #1

    Mar 20, 2010, 06:12 AM
    Can you deduct mortgage interest paid to a foreign bank for rental home in US
    Client owns rental property in the US- the home mortgage is held by a foreign bank... is the mortgage interest deductible on the Schedule E?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #2

    Mar 20, 2010, 06:45 AM

    Yes, but there is a problem. Your client is required to withhold taxes on interest payments to the foreign bank.
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