US tax question

[Splits]

I'm considering temporary transfer to Singapore (2-3 yrs). Although the company will pay for relocation, school fees, etc., my kids are in high school and the move will be highly disruptive for them and to my wife's career. We recently took advantage of the low home prices and interest rates and moved up to a new, larger house. Thus, family will stay put.

My question is whether I can claim both the mortgage interest deduction (on US primary residence) and the foreign housing exclusion (Singapore rental) simultaneously. Although I will travel often to the home office, I should qualify for the foreign residence test.

[Best Advice Ever]

Get the company to pay for a good tax accountant (Singapore and US) - don't even CONSIDER doing this yourself!!!!   

[Vulcanl]

Splits,

Based on the below, I see no reason why you cannot take the foreign housing exclusion on top of your mortgage deduction:

http://www.irs.gov/businesses/article/0,,id=202079,00.html

Generally speaking, you just have to be careful that you do not 'double dip' on any income for which you will have taken other exclusions, credits or deductions (such as the foreign tax credit and foreign earned income exclusion).

Please be aware that the foreign housing exclusion in particular is an 'audit trigger' item on the part of the IRS.  You need to ensure that it is valid and that it can be substantiated.

I agree with PP that the situation you describe is fairly complex and having expert advice on it is warranted (whether it is you or your company that pays for such advice).

[Think first]

This is for your wife.  I hope your marriage is very strong.  Seen many men dump their wives for Filipino hookers and bar girls.  Lots of temptation if he likes bars and partying.  Not meaning to scare monger but just happened to yet another friend of mine and her husband just dumped her after 20 years of marriage!  She left for a trip to visit new grandchild and he moved a hooker in!

[not to be rude,]

but if you can’t trust your husband to not sleep with hookers-or anybody for that matter-just because you aren't there to stop him,then maybe you shouldn’t be with him. And if you leave to visit your grandchild and your husband moves a hooker into your home, take him for all you can, honey!

[scarbowl]

Singapore is a good location for children and for families.  Agree with earlier poster that husband's behavior was not location-related.

As for the tax question - you can take the interest deduction on your primary residence.  But I can't see how you can have a primary residence in the States and take the housing exclusion for Singapore at the same time.

But that's common sense and may have no relationship to the law.

[Vulcanl]

scarbowl,

"...But I can't see how you can have a primary residence in the States and take the housing exclusion for Singapore at the same time..."

The housing exclusion makes no mention whatsoever of 'primary residence,' merely of 'foreign housing.'  That leads me to conclude that the two are not mutually exclusive.

Again, best thing for OP to do is to talk to a tax expert.

[SPGee]

"Not meaning to scare monger but just happened to yet another friend of mine and her husband just dumped her after 20 years of marriage!  She left for a trip to visit new grandchild and he moved a hooker in!".

Western men are so classy and romantic!

[AMPBoi]

True, true.  We are.

We have to be though - how else can we compete with 1.6m / 55kg / bespectacled Singaporean studs?  Have you seen the smooth way they spit chicken bones onto tables at hawker centres whilst telling amusing stories about their mums to swooning Singaporean hotties?  Damn hard to beat that!

[jalanperak]

True, true.  We are.

We have to be though - how else can we compete with 1.6m / 55kg / bespectacled Singaporean studs?  Have you seen the smooth way they spit chicken bones onto tables at hawker centres whilst telling amusing stories about their mums to swooning Singaporean hotties?  Damn hard to beat that!

Indeed. How else can we possibly compete with these awesome specimens of manhood, who carry their girlfriends' handbags for them, while letting the family maids carry their military backpacks.