more tax questions deducting uk mortgage interest
Oct 5th 2007, 5:30 pm
#1
BE Enthusiast
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Joined: Aug 2006
Location: Los Angeles Ca
Posts: 375
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.
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.
Oct 5th 2007, 10:12 pm
#2
Mr. Grumpy
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
Re: 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.
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.
are you a us tax payer or uk tax payer?
Oct 5th 2007, 10:17 pm
#3
BE Enthusiast
Thread Starter
Joined: Aug 2006
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Oct 6th 2007, 3:06 am
#4
.
Joined: Nov 2002
Location: Where bad things rarely happen in movies
Posts: 8,933
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.
