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Can I deduct rental mortgage interest for a loan obtained in Canada?

 
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Can I deduct rental mortgage interest for a loan obtained in Canada?

The mortgage interest paid on the rental property can be entered as an expense on Schedule E.  You should also enter the rental property as an Asset to be depreciated.

If your lender reports the interest paid in Canadian dollars then you need to convert that amount to US dollars when completing a US tax return.  Go to this IRS website for Yearly average currency exchange rates - https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates

Using the TurboTax online editions you will need the Premier edition or higher to complete the Schedule E.

Using the TurboTax desktop CD/Download editions, any edition can be used to complete a Schedule E.

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3 Replies

Can I deduct rental mortgage interest for a loan obtained in Canada?

Is the rental property secured by the Canadian loan?

Can I deduct rental mortgage interest for a loan obtained in Canada?

Yes, it is.

Can I deduct rental mortgage interest for a loan obtained in Canada?

The mortgage interest paid on the rental property can be entered as an expense on Schedule E.  You should also enter the rental property as an Asset to be depreciated.

If your lender reports the interest paid in Canadian dollars then you need to convert that amount to US dollars when completing a US tax return.  Go to this IRS website for Yearly average currency exchange rates - https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates

Using the TurboTax online editions you will need the Premier edition or higher to complete the Schedule E.

Using the TurboTax desktop CD/Download editions, any edition can be used to complete a Schedule E.

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