Someone told me that they found an article on your website about using a
revolving line of credit for your revenue (rental) properties.
This was my understanding of it (example):
- your renters would pay you $2000/month
- the line of credit against the rental house / mortgage would increase by
- you take the $2000 from the renters and apply to your personal private
As I see, the advantages of this would be that you would pay of your
personal mortgage first and the expense on your interest for your rental
property would be the maximum, as the mortgage for that property would not
decrease until your private mortgage is paid off (thus a higher deductable
amount for the rental property).
Is this legal? Can it be done? And is there an article on your website
that explains this in more detail?
david ingram replies;
You can find the newsletter you are referring to by going to www.centa.com
and accessing the November 2001 newsletter in the top left hand corner box.
Go to Newsletters - Go to 2001 - Go to November.
This was originally written by me in October 1976. Thousands of people have
used the method to make the equivalent of their mortgage tax deductible.
And, three years ago, the Supreme Court of Canada ruled in its favour in the
John Singleton case.
The CRA has also issued Bulleting 533 which deals extensively with the
Fraser Smith wrote a book called the Smith Manoeuvre which you can get and
read for another variation which applies to a lot of people.
CEN-TA Cross Border Services - Tax, Visas, Immigration