r2i forum

Folks,

Anybody (in US) claiming tax benefit on the interest paid on mortgages for properties in India?

If so, please share the information on how we can do this.

Thanks.

Yes this can be done. Some consultants and individuals argue whether it is right or wrong. I know some tax consultants have deducted the interest paid on home loan in India. Only interest is tax deductible.

Today my tax consultant has done for the year 2007. So go ahead and enjoy a few thousands more. And don't forget to send a few $$$ to me.

Thanks

How can this be valid? Tax Consultants can do what they want. Is'nt the tax payer ultimately responsible?

Just so you know - IRS checks the statements filed by the banks and tallies with the individuals and when it does not match, they do come after you.

Does the Indian banks submit the interest information to IRS???

Why should the banks in India submit any info to IRS or tax agency/dept in any other country?

Are you saying taking tax deduction on home loan in India is illegal or fraud?
Or are you saying something else?

I heard may tax consultants has done that earlier, but none of them had any queries from IRS. If anyone has heard queries about IRS on home mortgage deduction please let us others know.

The IRS tax publication does not say anything specifically against it. If you see otherwise around please help others know.

I do pay EMI in INDIA. I don't even know how much total interest I paid for 2007. What is the exchange rate you are using? This may be wrong doing.
Many tax consultants are dumber than us. I seen many people from H&R block.
I belive MrLons is right.
You need to get the Interest paid information. First, as a procedural matter... note the IRS runs a document-matching compliance program on all tax returns filed. If you deducted mortgage interest on 2007 Schedule A, Line 10 (Home Mortgage interest and and points reported to you on Form 1098), the program will look to match up amounts reported on that line to amounts reported on Form 1098 as filed by the mortgagee. Banks and mortgage companies routinely file these forms. If you deducted your interest on this line and no Form 1098 was filed.IRS may query you. Had you reported such amount on the next line, line 11, for home mortgage interest not reported on Form 1098, chances are much smaller they would be asking you about a $10k deduction.
It is good idea to call IRS people and follow what they say.
One more thing - If there are no queries on tax filing, it is not that everything right. By any chance in future years, If they get red flag on filing, then they will go through all the previous filings.
Good luck.

deleted - duplicate post.

IRS Publication did not mention any thing about the location of the Secondary Home..
If you are paying tax on interest earned in India in USA (1099-INT from citibank NRI Account ) logically u should be eligible for taking Tax credit for the interest paid on Home loans.
Coming to matching the 1099-INT with the bank statements.. This will never happens.. I am receiving 1099-INT from Citi bank for past 9 yrs.. every year they send me after I file tax returns (In May/June).. some times I report the 1099-INT in next year returns and some times I miss it.. but never got query from IRS about this.
In other forums I have read there is alternative form other than 1098 (interest on home loans) .. some thing related to Overseas income & expenditure and interests etc.,, I think we should be able to report our Home Loan Interest (Indian) in this form.. as we won't get 1098 from Indian banks..
If any one did more research on this form.. please post in this forum.
May be ICICI can give now.. as they opened branch in New York this year..
Also if any one took credit already in USA.. please post the details.:emteeth:
Mukunda

Hi,

I spoke to customer support IRS few years back and he did mention that we can claim tax benefits for taxes we paid in India, provided it's our primary home. But since total amount I paid didn't beat standard deductions, I never reported it.

Disclaimer: Please don't take this as only source of information for claiming tax deductions, my situation might be different from yours, you can call IRS CS to get more info.