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Mortgage deduction on a foreign home

Can we claim a mortgage deduction for interest paid and home owners insurance on our mortgage which is on a foreign property? We do not live in or have any property the US.
2 Replies
Opus 17
Level 15

Mortgage deduction on a foreign home

Homeowners insurance is never deductible on a personal residence.  Mortgage interest is deductible even if paid to a foreign bank or lender, provided you meet the other criteria.

(Interest is deductible on your primary residence and one second home; if you have more than 2 homes you can choose which one to deduct.  The loan balance can only be up to $100,000 more than the acquisition cost. And the mortgage must be "perfected" against the home -- it must be a legal debt recorded against the home in such a way that you could lose the home (be foreclosed) if you stopped paying.)

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Level 1

Mortgage deduction on a foreign home

Being a property overseas, I do not receive a 1098 form. How should I input the mortgage interest (I am using Premier edition desktop version)? After choosing the option that "... I do not receive a 1098", TurboTax is asking for the lender's address (following US format address: State, zip code) and there is no option choose/input a different country. Moreover, it is asking for the lender's SSN or Employer Identification Number, which the lender dows not have because it is based in another country. How to handle this?


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