Mortgage Interest Deduction on Foreign Property Looking for some information to base decisions on as I move through the home purchasing process:
I am US citizen who is being stationed (I am Active Duty Miliatary) in Spain starting in June. My wife is a Spanish citizen and a permanent US resident. We want to buy a home in spain that we will maintain and ultimately use as primary residence once i retire.
Can we deduct the mortgage interest off of our jointly filed US tax return?
I will be on the title of the home with my wife, but the loan is more expensive if I go on the mortgage, because i am a foreigner. I will be listed as a co-signer for my wife, but not a debtor. Do i have to be listed on both the title and as a debtor on the loan to be able to claim the interest? Again, we file joint income taxes in the US.
Is there anything I should consider when making the purchase or obtaining the loan that my be different because of my intent to retire and live in the home permanently in the future?
Thanks. |