Main house in Canada, is the mortgage interest deductible?

Yingping L: Main house in Canada, is the mortgage interest deductible?
I work in US, but my family is in Canada, and we bought house in Canada (no house in US). Wonder whether the mortgage interest paid in 2008 is tax deductible. Thanks.
Sorry, I forgot to mention the question is about the deduction in US income tax return.

Answers and Views:

Answer by donfletcheryh
If you are referring to Canadian tax, no. In Canada capital gains on your primary residence are exempt from tax, but not mortgage interest.

This gives Canadians the incentive to get their mortgage paid off asap unless they are renting the home to someone else.

Answer by taxmannyc
Yes, if it’s your primary residence you can deduct the mortgage interest on your US return, even though the property is outside the US.

Answer by MadMan
Yes it is. However, you should talk to a professional as there could be a requirement for you to withhold 30% of the payment and then the bank would have to claim this back from the government. As no bank would want to do this, they would just increase your payment by enough to cover the withholding, which you would not want. So, talk to an expert first.