US Cross-Border Tax Blog

Published by W.L. Dueck LLP

Posts filed under ‘Debt Financing’


Repaying your Canadian-dollar mortgage? Don’t be surprised by a US tax bill.

The ownership of real property is often made possible with mortgage and other debt financing.  Such mortgage financing offers a US taxpayer the ability to deduct for income tax purposes the interest paid, subject to some limitations. The repayment of the mortgage would not normally be expected to create an income tax liability.  However, for a US citizen or resident repaying a non US-currency denominated debt or mortgage during a period of a strengthening US dollar vis-à-vis the currency of… Read More