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My wife and I are planning a move to the United States and own a home in the UK. We are planning on purchasing a home in the in the United States and also keep our home in the UK. If we rent the home out in the UK and we maintain two mortgages, what will be allowable for tax deductions if we live 6 months in the UK and six months in the US? What if my wife stays in the US and I stay in the UK? The way things are going now I am thinking of leaving her to stay in the UK.

US/UK Expatriation
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Robert Ferguson
Are you and your wife citizens of the US or the UK or hold dual citizenship?
Reply 441 weeks ago
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Tax Professional Answers

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Jane Swain
In the UK you get tax relief for mortgage interest against rental income if you let the property. But if you live in the property there is no tax relief fr mortgage interest. If you spend 6 months living in the UK and 6 months in the US then this presumably means you will let the UK property for the 6 months you are living in the US in which case 6 months worth of interest will be allowable and can be deducted from the rental income. If you and your wife each live in one of the properties for the whole year then there will be no rental income and no tax relief for the mortgage interest.
Leave a Comment 438 weeks ago

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Dr. Clifford Frank
I agree with Jane
Reply 437 weeks ago
 

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