Using Nov 2001 Newsletter to make mortgage interest deductible in Canada


As per your November 2001 CENTA newsletter my husband and I are going to
deduct interest on accumulated rental expenses on our two rental properties,
one of which I own and the other that he owned prior to our marriage. As
well we wish to borrow money to invest in real estate and well as other
ventures together. I share a line of credit with my husband that we will use
solely for investment purposes. My question is how should we allocate the
tax deductible interest expenses between the both of us when we do our
seperate tax returns since there is only one line of credit. Are we better
off splitting up the line of credit into two accounts or can we allocate the
deductions between the both of us in some kind of manner?


david ingram replies:

You should likely get a Manulife Line of Credit which can be divided into 5
separate expense portions. That solves the question in two ways because you
can apportion your share and his share and keep them properly segregated.
If you do not do this, I suggest two lines of credit. One for yourself and
one for your husband. If the bank is unhappy for some reason, you can
cop-sign each other's loan. For MANULIFE information, call Stuart Rodger at
(604) 351-6133. You can also hear Stuart as a guest on Fred Snyder's Sunday
morning radio program "ITS YOUR MONEY" from 9 to 10:30 AM.

I will be a guest myself this next Sunday as I appear on the last Sunday of
every month.