Mortgage interest and property taxes paid in Canada deductible forCalifornia US resident buying property in Canada - Joan Marsh

HI David –
 
You sent me this e-mail awhile back.  Thanks for the guidance.
 
I have a followup question – what if we rent out the home in Vancouver and still live in CA? Can we still deduct the interest from the mortgage on that home in Vancouver?
 
We currently own and live in a home in CA.
 
Thanks and kind regards,
 
xxxxxxxxxxxxx xxxxx
 
-------------------------------------------------------------------------------------------------------
david ingram replies:
 
You would then have a rental in Canada and would file a Section 216(4) Canadian non-resident rental return each.
 
Then you would transfewr the figures to Schedule E of your US return.  If you had made a profit and paid any tax to Canada, you would claim a foreign tax credit on US form 1116 attached to your 1040.
 
It would also go on your California 540 return.
 
 
 
-----Original Message-----
From: David Ingram at home - bus at [email protected] [mailto:[email protected]]
Sent: Sunday, February 01, 2004 11:57 PM
To: Subject: Mortgage interest and property taxes paid in Canada deductible for California US resident buying property in Canada - Joan Marsh Mortgage Broker at (604) 535-9981 From Ask an income tax and real estate expert planner consultant expatriate taxin situation
 
From:          
Reply_To:      
My_question_is: Applicable to both US and Canada
Subject:        Mortgage interest deductible for US resident buying property
in Canada
Expert:        
[email protected]
Date:           Sunday January 25, 2004
Time:           05:28 PM -0800

QUESTION:

We are a Canadian couple living in California and are interested in buying a
home in Vancouver.  Is it true that the mortage interest and property tax we
pay in Canada can be deductible from our US income tax? Do we need to get
the financing from a US institution, does it matter?
=================================================================================
david ingram replies:
 
Assuming that the home is empty and is merely a home away from home, you can deduct the interest and property taxes on your US return if your second home is in Florida, Cost Rica, Brazil, London, Berlin, Madrid. Lima or Good Olde Vancouver or Whistler.
 
You can get your financing from anyone that will give it to you. A Mortgage Broker I can recommend without reservation is Joan Marsh.  She does not use email but has a fax, etc.  You can get hold of her at (604) 535-9981.
 
David Ingram's US/Canada Services
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This from ask an income tax immigration planning and bankruptcy expert consultant guru or preparer  from
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