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Is mortgage interest on a foreign home loan India deductible? How do I add deduction in US taxes with interest paid in Indian Rupees?

My situations is where I bought a second home in India Dec 2016, whose home loan repayment started from Jan 2017, Can I deduct in my US taxes for 2016 if not can I deduct in my US taxes for 2017 and how can add the Indian rupees conversion in my US taxes, also do I need to have tax proof from my Indian NRE bank loan.
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2 Replies
IsabellaG
Expert Alumni

Is mortgage interest on a foreign home loan India deductible? How do I add deduction in US taxes with interest paid in Indian Rupees?

Any deduction that you claim will have to be on your 2017 taxes, if you paid no interest in 2016.

Home mortgage interest on a second home is deductible even if the mortgage is on a property located outside the US. You won't have to send proof of the mortgage with your return, but you'll hold on to the documentation in case the IRS ever questions it. You would covert to US currency for the interest paid as of the date of the payments. It's a calculation that you'll perform separately, not in TurboTax.

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Is mortgage interest on a foreign home loan India deductible? How do I add deduction in US taxes with interest paid in Indian Rupees?

There is no option to enter India mortgage addresss in interest certificate section, remains only US address. Can you help how to enter india address in that section
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