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I have a property abroad (Israel), which i fully own and i'm…

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I have a property abroad...
I have a property abroad (Israel), which i fully own and i'm considering taking a mortgage/loan against that property to buy a property here in the US. My questions are regarding the Tax implications of this, in the US. i.e, would i be able to deduct mortgage/loan payments if they are abroad.Are there any taxes in the US if i get a loan abroad and transfer the funds here?
Submitted: 1 month ago.Category: Tax
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1/8/2018
Tax Professional: Lev, Tax Advisor replied 1 month ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 31,361
Experience: Taxes, Immigration, Labor Relations
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For deduction purposes - there are no difference if the property is located in the US or abroad.
As long as that is a bona fide loan - with clear intention to pay it back - loan proceeds are not included into taxable income.

The transfer itself is not a taxable transaction - but you might want to communicate with your banker before such transfer - so it will not be considered as suspicious transaction.

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Tax Professional: Barbara, Enrolled Agent replied 1 month ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,850
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Different expert here - my name is ***** ***** please allow me to provide you with additional information that will be helpful in making your decision.

Please know that because of the Tax Reform Bill, starting in tax year 2018, up to $10,000 can be deducted for mortgage interest. Also note, that the standard deduction amounts have doubled, so it may not even come into play to deduct your mortgage interest depending on the amount.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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