US resident husband (me) and Candian wife, purchasing a Canadian home

Forum|Forum|1 year ago
June 15, 2025
1 reply
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I plan on purchasing a home in Vancouver BC, and I believe for tax purposes it is best to put it under my wife solely. I will be taking a mortgage (through a Canadian bank) through my wife, but I will be the guarantor, for about 50% of the house's worth. Is the interest that we pay to Canadian bank tax deductible when I file with the IRS. We file married, filing jointly. Thanks.

pk_

Level 15

@jyee315

(a) what do you mean by "US-Resident" -- are you saying you are US person ( citizen/GreenCard/Resident for Tax purposes ) or that you are NRA in the US not having met the SPT yet?

(b) If I assume that you are US person with US Tax-home, and your spouse ( Canadian citizen ?) lives with you , then , absent any legal documents/ agreements otherwise, marital prop may come under State laws -- marital ownership of assets.

(c) In general, when filing jointly, as long as one of you are liable for the debt, interest paid is deductible under the home/second-home grouping , if you take itemized deduction.

Since you are filing MFJ, I am assuming that your spouse has a TIN ( SSN or ITIN )--yes ?

Does this help or am I in the left field ? Is there more I can do for you ?

jyee315Author

Level 3

For filing purposes. I am a US citizen and resident. I file taxes in US, and treat my non resident wife as a resident alien for tax purposes and file married filing jointly. Yes she has a US SSN. I do not do taxes in Canada. My wife and kids live in Canada and is a resident of Canada. Nonetheless, I you did answer my question. Thanks.