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> My question is: Canadian-specific > > QUESTION: We plan to take a line of credit on our primary residence until we > are able to sell it. The money will be used as a down payment for an > upgraded house. Until we are able to sell the primary residence we plan to > rent it. Will the rental income be tax deductible for the interest on the > line of credit? If we deduct the interest from the tax, will we loose the > capital gains exemption for the primary residence? > > --------------------------------------------------------------------------- David Ingram Replies
Because the money was borrowed to buy a house for you to live
in, it is considered a personal expense and is NOT deductible for Canadian
Purposes. US readers will know that the interest is deductible for them.
Most Canadians with any cash flow can make their Canadian
Mortgage Interest deductible over a number of years, if not immediately.
Go to www.centa.com and click on
newsletters at the top.
The Nov 2001 newsletter explains several methods of making
your Canadian Mortgage tax deductible by using rental real estate, mutual fund
acoounts, or self employment income.
Individual consultations are available at/from:
Real Estate Income Tax Specialists
(604) 913-9133 Fax (604) 913-9123
Cell (604) 657-8451 |
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