My question is : Canadian-specific
Hi David - I signed up for a condo under construction
and paid 10% down on my LOC this year. The possession
date is mid-2006. Will I be able to deduct the
interest charged on my LOC this year or do I have to
wait until next year? Since the funds from LOC were
taken to pay for the revenue property, I am assuming
the interest is deductible. Your answers to these
e-mails are very helpful.
david ingram replies:
Unless you are in the full time business of building residential housing,
the interest while building is NOT deductible.
Keep track of it though. It will be added to the actual price paid as an
addition to the ACB (adjusted cost base) and you can depreciate some of it
and it will be a deduction from any future capital gains.
CEN-TA Cross Border Services - Tax, Visas, Immigration