I live in the USA on a green card. I bought house in India. I have taken the bank loan from an Indian bank to buy my house. I am paying my mortgage through a Non-Resident External (NRE) account at an Indian bank.

Am I eligible for any tax benefit in USA? I am paying the mortgage through my NRE account, and I'm transferring money from the USA into India into the account.


Since you're a GC holder, it is obviously not your primary residence. As such, you cannot deduct mortgage interest on your schedule A.

However, if you rent it out, you might be able to deduct some, or all, of the related expenses (including mortgage interest) on your schedule E. But you have to talk to a licensed tax adviser in your state (EA or CPA) who also knows how to work with the Indo-US tax treaty.

There are additional FBAR/FATCA obligations that you should look into.


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