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tax question (interests deduction)

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jbheywood
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tax question (interests deduction)

Post by jbheywood » Tue, 06 Jul 2010 3:17 pm

Hi there,
I might be relocating to SIN with some student loan remaining from the US (private and gvt lenders). Would anyone know if I will be able to deduct my student loan interests for my SIN income tax?
what about mortgage interests of a US property? (doubt it)
I know the best way to find out is to talk to a tax accountant but I just wanted to get a general sense

Thanks,

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sundaymorningstaple
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Post by sundaymorningstaple » Tue, 06 Jul 2010 4:19 pm

You cannot deduct anything for all intents and purposes. Singapore's tax laws are so simple and black & white that you will be amazed. There is not any need to use an accountant at all. Oh yeah, they're extremely low as well.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Strong Eagle
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Post by Strong Eagle » Tue, 06 Jul 2010 9:08 pm

You will have to continue to file US income tax returns as well as Sing tax returns.

You will deduct the interest on your US return, and then apply the earned income exclusion, so essentially, you pay no US tax. You really don't get anything out of your mortgage interest deduction unless you earned over about US$92,500 this year.

jbheywood
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Post by jbheywood » Sat, 10 Jul 2010 1:38 pm

Got it. Thank you!
So in essence I won't get any benefit of student loan interest tax shield (in a form of avoiding/reducing double taxation) until my total income goes beyond 92,500 correct?

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sundaymorningstaple
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Post by sundaymorningstaple » Sat, 10 Jul 2010 2:36 pm

jbheywood wrote:Got it. Thank you!
So in essence I won't get any benefit of student loan interest tax shield (in a form of avoiding/reducing double taxation) until my total income goes beyond 92,500 correct?
Odd way of putting it I suppose, but yes, if you itemize your deductions and they are in excess of the standard deduction, then the excess will reduce your US tax liability. It won't do anything for you Singapore tax liability at all.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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