This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
My name is SSSSSSSSS and I am an Insider subscriber and I have a
question for David Ingram.
I am purchasing a parcel of land to be developed. For the down
payment I
would like to be able to utilize some of my stagnant
Self-Directed RRSP's
and possibly pension funds. I have heard mention of 3rd Party
RRSP loans.
How do I access the money for this investment without taking it
into income?
Greatly appreciated
SXXXXXXX
------------------------------------
david ingram replies:
Your RRSP can contain a mortgage on your personal house provided
it does not exceed CMHC guidelines.
I do not know today whether the percentage is 66 2/3 or 75% of
the market value.
Perhaps you could put a mortgage on your own house to free up
some of the funds.
The mortgage on your own house could be a first, second or third.
The interest paid to your RRSP would be deductible as either
straight income or could be added to the adjusted cost base of
the property you are buying.
------------
I hear of 3rd party RRSP loans. However, the RRSP can not be a
direct security unless you were to pre-sign a withdrawal form
allowing the person or institution who loans you the money to
withdraw the money which in turn generates a tax bill to you.
I have NEVER seen such a loan made.
If another reader has something to add here (you make the loans
for instance) I would be glad to forward the information on to
the questioner.
The tax advisor had just read the story of Cinderella to his
four-year-old daughter for the first time. The little girl was
fascinated by the story, especially the part where the pumpkin
turns into a golden coach. Suddenly she piped up, "Daddy, when
the pumpkin turned into a golden coach, would that be classed as
income or a long-term capital gain?"
david ingram - [email protected] <mailto:[email protected]>
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 913-9133 - (604) 913-9123 www.centa.com
<http://www.centa.com>
Cell is (604) 657-8451 (10 AM to 10 PM seven days a week)
US / CANADA / MEXICO
Working Visa and Income Tax Specialists
Be ALERT, the world needs more "lerts"
---
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.500 / Virus Database: 298 - Release Date: 7/10/03
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://lists.centa.com/mailman/private/centapede/attachments/7a62f55f/attachment.htm
---------------------- multipart/alternative attachment--
What's Related