more tax questions deducting uk mortgage interest
 

I am talking to my accountants about this but its a tough problem because it involves both US and UK tax laws I think.
I am claiming the mortgage interest on my UK mortgage in the UK as it is a rental property. I have recently remortgaged that property to get extract some equity to purchase a property here in the US.
I plan to claim the US mortgage interest on my US taxes of course. My question is can I claim the interest on the remortgaged money from the UK. Of course I cant claim the interest on the original Uk mortgage since that is already being claimed in the Uk, just the difference beween the old amount and the new amount.
This assumes that I do use the money from the UK remortgage to purchase a property here.
Effectively I am purchasing a property here with a 100% mortgage using two mortgages, one from the UK and one from the US.

Re: more tax questions deducting uk mortgage interest
 

why are you claiming the interest in the uk on your uk taxes?

are you a us tax payer or uk tax payer?

Re: more tax questions deducting uk mortgage interest
 

i am a us taxpayer but have to pay uk tax on my uk rental property income

Re: more tax questions deducting uk mortgage interest
 

Is there no relief value left in the Uk property for the remortgage amount - ie are the repayments now too high compared to the rental value of the UK property? If so, gut feel would say you're going to be unlucky persuading the IRS to allow relief on a portion of a mortgage on a different property in a different country, even if you did use the equity release part of that mortgage as a deposit for a rental property in the US. But it is just a gut feel....speak to an expert! Or even call the IRS direct - I've spoken to them a few times and the folk on their helpline have always been extremely helpful and knowlegeable.