Hi David, I own a condo in VAncouver which I bought for 280K four years ago. WE just had an appraisal from the bank putting it at 450K. WE would like to move to Nova Scotia next year, rent out our condo here, and buy a place in NS. with an indefinite time period of being there but with the aim of coming back in 5-10 years, keeping both places. The plan is to rent out our condo here and buy there to live in. We will probably use our credit line to make the downpayment on a place in N.S. If we can claim a tax write off for the interest of an investment I am wondering how that works if the investment will then be a place we will be living in. Can we still claim it? Is the interest on the investment a tax deduction on the income you earn - how does it work? IS there any way we can still use it in this situation as it is our second property? How do I go about learning more about the tax deductions of an investment and acutally apply it? Thanks very much, -----------------------------------------------------------------------------------
david ingram replies:
I charge $400 for an individual consultation on this subject by phione or in person. However you are in luck.
Leave Sunday, August 12th open. I will be conducting a FREE three part seminar on that date at the Holiday Inn at 711 West Broadway in Vancouver..
12 noon to 2:30 PM - Mortgage Interest as a deduction including Singleton (won), Overs (won), Evans(won) and Lipson (lost) Cases.
3 PM to 5 PM - Reporting rules for US persons with Canadian Financial Accoutns and Canadian RRSP accounts.
simply put a US citizen with no US income whatsoever is supposed to file a US tax return no matter where they live in the world.
More important than that, is the fact that if the US citizen has a Canadian RRSP, it is considered a foreign trust. Assuming that there is more than
$10,000 US in all the US persons foreign accounts, failure to report the foreign trust (RRSP) to the IRS AND the Departmetn of the Ttreasury
can result in minimum fines of $10,000 (per foreign account) and maximum fines of $500,000 plus 5 years in jail plus 35% of the money in the
RRSP plus 5% for every year not reported. - O U C H !!!
5:30 to 7:30 PM US Tax returns - who has to file - aimed at Canadians who have been working in the US and Americans living in Canada or Canadians with
rental property in the US on which they are losing money. Snowbirds should attend this as well if they are in the USA more than 120 days a year.
Anyone intending to attend this seminar about mortgage interest or when a Candian has to file a return should read the November 2001 newsletter for mortgage interest and information about what Canadians have to file a US return.
If they are a Snowbird, they should read the April 1994 newsletter.
If they are a dual citizen, the Oct 1993 newsletter - These can be found at www.centa.com in the top left hand box.
Then anyone who is filing both returns should go to the second box down on the right hand side and read the US/Caanda Taxation section.
Print the above out. Highlight questionable sections and bring them along to the seminar so you remember your questions.
-----------------------------------
Those interested in the mortgage interest as a deduction concept should read Fraser Smith's, "The Smith Manoeuvre", available at any good bookstore although you may need to have them order it for you.
Phone (604) 731-8900 to register for all or any of the seminar. �
Comments (0)
CEN-TA Cross Border Services - Tax, Visas, Immigration
http://www.centa.com/article.php/20070716235013434