Foreign mortgage interest deductibility?

[bedraggled]

Having looked at farmland in Costa Rica in March, and having been enthralled with Ireland acreage (hectareage?), I need to post:

Is foreign mortgage interest deductible on USA Form 1040?  Is it deductible if financed through a USA bank?  We have been with Citimortgage since 1990.  Citimortgage said "talk to your tax advisor." 

Guess what: I am my tax advisor (gotta do something with that cum laude accounting degree) and I do not know!  (But I can pay an expensive tax consultant).

Somebody[?] said a Costa Rica bank mortgage provides no deductibility on USA Form 1040. 

Help would be greatly appreciated:  Can I deduct mortgage interest on a Costa Rica farm financed through a USA bank, like Citimortgage?  Chase?  Quien sabe?

And siempre mejor to all!

Thanks.

[curlew]

Can I deduct mortgage interest on a Costa Rica farm financed through a USA bank, like Citimortgage?  Chase?  Quien sabe?

I'm pretty sure the answer is yes, especially if your farm is being run as a business and not just a residence. The mortgage interest would simply be a business expense regardless of where your business is located. Can't see how it would matter at all if it was financed through a USA bank or not.

I think the answer is also yes if you are treating it like a residence but there may be some caveats to that one.

I own a farm in a foreign country myself but I haven't declared anything on my taxes yet and don't intend to.

[bedraggled]

Curlew,

Thanks.  Great idea.

Now can anyone chime in on mortgaging a personal residence in a foreign nation.

Can I deduct bank mortgage interest on my USA Form 1040?

Thanks again.