Jerseygirl

No we didn't want the debt...but we did add up the pros and cons of obtaining a mortgage.

MsElui

i was told by our accountants that we can ONLY claim the mortgage interest from our main property. If we rent in us - then we can claim our main property as the uk home. as soon as we buy in the US - that becomes our main property and we can claim interest on that instead - but no longer for the uk property.

Jerseygirl

That's exactly as I understand it if you have a property in the US and further properties overseas.

BritGuyTN

You both need new accountants - you are being given incorrect advice

the location of the second property has no bearing on its eligibility

if its a second home that you use for pleasure you can deduct the interest in the normal way

if its a second home you rent out they you can deduct all expenses inc. interest/advertising/cleaning/rehab/insurance/property taxes/depreciation - you do this on a schedule E tax form when you file

i'm really confused about this crap advice you are being given

heres just one source

http://www.mortgagenewsdaily.com/714..._Deduction.asp

Under current rules, itemizing taxpayers can deduct interest and origination points on home loans and on equity lines of credit for both first and second (vacation) homes up to a total of $1,000,000 in value, and properties taxes on both, even if paid in a foreign country.

google brings up many more example

aside from internet sources my own personal experience of owning a property company and real estate both in the Uk and the USA confirms the above.

my cpa has been deducting interest on my UK property since I moved here in 2003

seriously, consider a different CPA, people in general are often loathe to question people who are perceived to be more expeienced/qualified or knowledgeable

I take the approach, 'trust but verify' when it comes to important information

Jerseygirl

Don't need a new accountant...I got it wrong I've just asked my husband.

BritGuyTN

these things often happen to the best of us

two of my mates in the UK are a couple of the most pendantic twats ever and pick up anything that is not gospel and 100% factually correct

I learnt my lesson a long time ago with those guys not to open my mouth unless I really do know what I am talking about since I used to get berated so much

as such, unless its opinon about a scenario, if I comment on it I usually try and make sure I know its god's honest truth

Jerseygirl

I did begin my post with 'I don't think'... but you edited that out when you quoted me.