I am presently living in Dubai where I am considering buying a house.
I understand from some of the other blogs that so long as that house is my first home or second home, the loan is secured against the home, there is a true debtor creditor relationship, I’m legally legally liable for the loan, and pay the payments myself, then I can deduct as mortgage interest as I would my first home in US.
However, in Dubai, when taking on a home loan through Sharia Compliant (Islamic Finance) lenders, the “interest” is referred to as “profit”. Will that difference in nomenclature cause any issues in deducting that as mortgage?
