Foreign mortgage interest & property tax

[NSNM]

If the tax payer comes from another country to USA to work on a valid work visa (H-1) or permanent resident alien (green card) visa and files Form 1040 for 2009. He lives in USA in a rented apartment (his current resident and tax home). However he has a qualified second home in his native country, where his dependent aged parents live, but is not rented. He paid mortgage interest and property tax for that second home in 2009 out of his earnings from US sources. Note that mortgage bank abroad does not issue Form 1098, but he has valid record of payments.

Could he claim deduction on Schedule A for the mortgage interest and property tax paid on his second home ? Any response is appreciated and thank you.

[erchess]

Well

Regarding mortgage interest I didn't find anything specific in TTB but it seems like you could deduct the interest if you remembered to put it as interest not reported on a 1098 and give full particulars on to whom it is paid. Since you won't be able to give an SSN or EIN for the recipient of the interest you will more than likely have to file on paper.

Regarding the property tax why wouldn't it be like any other Foreign Tax? It seems to me that you could take it on Sch A (as Foreign Tax not as Property Tax) or claim the Foreign Tax Credit.

[travis bickle]

Review IRS Pub 514, Page 2

It states there that Generally, only foreign income taxes qualify for the foreign tax credit [my emphasis].

It then goes on specifically to say that you can deduct foreign real property taxes that are not not trade or business expenses on Schedule A.

[NSNM]

Erchess, I agree with your thought on foreign mortgage interest deduction, by giving details on attached note.
And I also agree with Travis Bickle on foreign real property tax deduction on Sch A.
I thank you both for your responses.
NSNM