Mortgage home loan answers
Learn about mortgage home loans and rates.
-
Payroll tax deduction is going to affect mortgages?
Posted on January 18th, 2012 No comments
Question by Angry Bird: Payroll tax deduction is going to affect mortgages?
I heard this on the news.That if they extend the payroll tax deduction it will doing getting FHA mortgages more expensive.I do not understand the link.It seems to be only for FHA mortgages, not conventional mortgages.Why? What are they planning to do?And it sounds like it would only affect future FHA mortgages. Not current.
Best answer:
Answer by cactusgene
Angry bird, there is no direct link between payroll tax reduction and mortgage. However, I understand that this bill is over 1,200 pages long and therefore includes provisions that have nothing what-so-ever to do with payroll withholding. I also have heard that it includes some modifications to the FHA program, but I have not seen any details and we just have to wait. However, the House has not passed the bill and the final product may look nothing like what the Senate just passed.
Know better? Leave your own answer in the comments! -
Is there any tax deduction for home loan in other countries ?
Posted on August 3rd, 2011 No comments
Question by Leo: Is there any tax deduction for home loan in other countries ?
If a person carries a home loan in other country (other than US) is there any tax deduction(relief) given by IRS ? A part of his earning in US is being used to pay home loan EMI in other country.
Best answer:
Answer by Ken
Mortgage interest on a 2nd home is deductible on schedule An as an itemized deduction, even if the indorsed home is located outside the U.S. However, if you reside in the U.S. and the lender is a foreign person/bank, then you are required to withhold 30% tax on the interest portion of the payments, unless a lower treaty rate applies. Depending on the jurisdiction, a treaty may apply to reduce or eliminate the withholding tax. However, if you want to rely on the treaty, you need to obtain a Form W-8BEN from the foreign lender where the lender certifies that it qualifies for treaty benefits. In either inspect, you will need to also file Form 1042 and 1042-S described that you made interest payments to foreign persons.
Give your answer to this question below!