Taxes and Deductibility
The Islamic financial services follow the Shariah principle that prohibits taking interest, uncertainty or speculation. There are certain rules and laws that need to be followed, when it comes to tax deductions on the income tax return. For all the income and commodity taxes that you apply for the Islamic financial products should be carefully analyzed. Your social security number is used by the trust for all the transactions, and the tax benefits from the personal tax return also flow directly into the linked account.
Each state has different laws when it comes to the deductions and interests on the mortgages, hence it is better to consult a tax specialist to see how you are specifically affected. For general guidance you may view the IRS tax publication under the section for Redeemable Ground Rents
Looking for more, well now we also offer any of the three methodologies for Islamic Finance, such as Ijara for long-term real estate, Murabaha for things such as Automobile or Inventory finance, and Musharaka for Student Loans and Goodwill Business Finance.