Can I use the interests pay to the loan to wash off the foreign rent income, in addition to building depreciation, on Form 1116? There is no existing mortgage on the r/e, and loan has nothing to do with the upkeep of the r/e. Reason for the loan is purely a strategy to reduce foreign estate tax.
Read more: When using a foreign real estate as collateral for a foreign bank loan, is the interest tax-deductible on US Tax Return?
