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    rkocharlakota's Avatar
    rkocharlakota Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Nov 25, 2009, 01:25 AM
    Foreign home mortgage interest
    Dear Intl Tax Expert,

    From the above answer, I understood that I cannot take the deduction for the Foreign home mortgade interest paid to aforeign banker simply because, the banker has the oblication to pay 30% to IRS and they will not usually do it.

    Please advise further on this. Also, kindly tell me the legal inplications of it from the IRS point of view.

    Warm Regards,
    Ramakrishna
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Nov 27, 2009, 11:25 AM
    Ramakrishna:

    You mis-understood.

    You CAN claim the mortgage deduction on your resident alien tax return (Form 1040 with Schedule A).

    However, additionally, you have a requirement to withhold 30% of the payment and send that 30% to the IRS. This requirement exists whether you claim the deduction or not.

    We are querying the IRS to determine how persons such as you should proceed.
    rkocharlakota's Avatar
    rkocharlakota Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Nov 30, 2009, 05:21 AM

    Dear Visataxes expert,
    Thank you very much for your advise and I look forward for your research on the same once you receive the confirmation from IRS on how to proceed on this situation.

    Warm Regards,
    Ramakrishna Kocharlakota
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