Is Sharif\u27s Castle Deductible? Islam and the Tax Treatment of Mortgage Debt (original) (raw)

2009

Abstract

This Article examines the tax treatment of Islamic mortgage alternatives and considers the cultural and constitutional implications of the tax treatment of mortgage debt. Islamic law cannot be separated from the religion of Islam, and one of the primary tenets of Islamic law is the prohibition of riba, which is defined by some Islamic jurists as the payment of interest on any loan. Financing institutions, working with Muslim religious leaders, have developed a number of financing instruments that do not violate the prohibition against riba, thus facilitating home ownership for those Muslims who do not feel comfortable with a traditional mortgage. Should payments under such instruments qualify for the home mortgage interest deduction? What are the potential consequences of either permitting or denying a deduction for such payments? This Article discusses the constitutional implications of denying a tax deduction and administrative and regulatory options to accommodate tax deduction o...

Roberta Mann hasn't uploaded this paper.

Let Roberta know you want this paper to be uploaded.

Ask for this paper to be uploaded.