Taxes Deduction on Overseas Loan

I want to buy a house in the US but pay fro it with a loan that I will contract in Europe. Does anyone know if I will still be able to deduct the interest of the loan from the taxes I pay in the US?


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In most cases you will not get a loan for buying house as an individual - you will get a mortgage on your house.

If you have a building company or a company that deals with buying houses then you will be able to get a loan.

IF it is a company and a loan , the origin of the loan does not interest the tax authority , the interest is an expense that is deductible as every other legitimate expense is.

If you are an individual and take a mortgage you can write off the interest on up to $1 million in debt to buy or substantially improve your first or second home (interest on a mortgage for a third home is not deductible unless it is a business or rental property).

Anyway , get an advice from a professional if you really want to know the updated situation regarding the specific loan that you wish to take.

Good luck!


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