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xnervwang
Level 2

2 questions when amending foreign house mortgage

I bought a house in my home country and pay mortgage every month. Since it's a foreign bank, they don't provide 1098 form. I get 2 questions when amending my 2021 tax.

 

1. I think I should use the 2021 average currency exchange rate to convert the foreign money amount to dollars for Box1. But since I got the mortgage in 2018, should I use 2018 or 2021 average currency exchange rate to calculate Box 2?

 

2. I don't have 1098 so I don't know if I should select yes or no here:

2.png

 

Thanks

3 Replies
pk
Level 13
Level 13

2 questions when amending foreign house mortgage

@xnervwang , I understand your questions but do not understand  the situation fully:

(a) I am assuming here that you are US person ( citizen / GreenCard / Resident for tax purposes ) --- when did you arrive here, with what visa and are you still and Alien ( Green Card or Visa) ?

( b) that you have a main residence in the USA ( Rental or own)

(c) you house in China is a second residence and that this was bought  before arriving  in the USA

(d) this property in China is personal property and is not income property ( yes ? )

(e) you took out a mortgage  on the property in 2018 for US$ XXXX ( converted from RMB to US$ at average / actual  exchange rate )

 1. Thus the remaining mortgage principle should be actual balance  converted  to US$ using Dec. 2021 exchange rate  ( RMB to US$) or the annual average published by the US treasury/IRS not that of 2018

2. even though you are telling the software that you do not have a 1098, just say "yes" to satisfy the software  -- it should not be asking that question but "yes" is valid since you are working with the equivalent to 1098 --a bank / lender statement.

 

Please can you clarify the situation more ( answer my questions above  and also why you are having to amend  your 2021 return  in addition to  how are you using the  property ?  I know in many countries, you take a mortgage  and pay while the construction is going one and do not have  possession or beneficial possession till after the whole mortgage is paid-off or replaced by a different mortgage  ( like the construction mortgage replaced by a regular mortgage  in the US ).

pk

xnervwang
Level 2

2 questions when amending foreign house mortgage

@pk  Thanks for your reply.

pk
Level 13
Level 13

2 questions when amending foreign house mortgage

@xnervwang , thank you very much for clarifying the situation -- now I understand what and why of the situation.  Thank you 

 

pk

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