Canadian wants to Consolidate Mortgage with Investment

Hi David
If I consolidate my small business loan & rental investment loan with my
home mortgage loan will I still be able to write off the interest? If
so, will I still be able to use my line of credit to pay the interest on
the business protion & rental protion of my new consolidated home
mortgage?
Thank you
KXXXXX
__________________________________________________________________________
david ingram replies:
My suggestion to you is that you do not consolidate but arrange to have two
mortgages.
1.	One is your original home mortgage on which the interest is not
deductible. This should be an OPEN mortgage with no restrictions on the
prepayment of any monies.
2.	The other is the business rental loan on which the interest is
deductible. This should be a floating line of credit which can be increased
on a monthly basis as required.
As your business monies and rental monies come in, use those monies to pay
down the first mortgage.
Then, when you need money to pay rental property expenses and business
expenses, simply borrow against the line of credit.
Under this scenario, the total amount of money borrowed remains
approximately the same, but the increasing interest on the line of credit
becomes deductible.
You can find out more by going to www.centa.com.  Click on Newsletters,
click on 2001 and click on November to read a 10 page dissertation on making
your mortgage deductible.
We will, of course be happy to help you arrange this combination of
mortgages and deal with the situation.  And to put it bluntly, if you can
arrange to make the interest on a $100,000 mortgage deductible, you will
save $2,000 a year of income tax.
ANY CANADIAN WITH A CASH FLOW CAN ARRANGE TO MAKE THEIR MORTGAGE DEDUCTIBLE.
Hope this helps.  Your name has also been added to our newsletter list.
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 Real Estate Taxation Specialists
US / CANADA / MEXICO
Working Visa and Income Tax Specialists
Disclaimer:  This question has been answered without detailed information or
consultation and is to be regarded only as general comment.   Nothing in
this message is or should be construed as advice in any particular
circumstances. No contract exists between the reader and the author and any
and all non-contractual duties are expressly denied. All readers should
obtain formal advice from a competent and appropriately qualified legal
practitioner or tax specialist in connection with personal or business
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Be ALERT,  the world needs more "lerts"
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