> I have bought a house in India on Loan and paying 11% tax
>> on it. Can I claim any tax benefit as I am repaying the
>> loan from my monthly salary here.
> I agree with Lanny & Ira with regard to deductibility. In
> addition, since you are a U.S. resident paying interest to a
> foreign person, you are subject to U.S. withholding tax on
> the interest paid (see IRC sections 881(a)(1) and 1442). I
> believe that the statutory rate of 30% would be reduced to
> 15% under the Article 11 of the U.S.-India Income Tax
> Treaty. You also need to file Form 1042.
I believe that as the mortgage is executed in India and is for a property located in India, the treaty and IRC would not apply. Admittedly, this treaty isn't my area of expertise but in this care, the execution of the loan is in a foreign country. If the loan was executed in the United States, I would expect that IRC would apply.
>
>
>
>
>
>
>
>
>