This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
This may have been sent twice
QUESTION:
April 8/2004
Dear Cen-tapede expert:
My mortgage($850/month)is about half of my monthly income, doesn't leave much for other living expenses, to help pay the mortgage I want to rent a room or two in my house with access to the whole house(local rent prices about $400/rm). Would this be a good way to make income from my principal residence? Will I have to pay capital gains if I sell?
If I decide to make the whole house a rental what happens($196,000 assessment when I bought in 2002, now it is assessed at $256,000)? If I do some improvements (about $30,000) I could probably sell for up to $350,000(similar property has sold for this amount with smaller home). If I sell then I no longer have an asset to use to gain equity to then buy more property. I am 27 years old and new to real estate. I don't have a large income and I want to figure out the right way to go about buying real estate and getting income from it. Any help or guidence will be greatly appreciated. Thank you.
Sincerely
Sean Cran
=====================================================
david ingram replies:
No time to answer all of this because it does not apply to this tax filing season. It is a future question.
However, if you only rent out a couple of rooms, it will NOT make your home subject to Canadian Capital Gains Tax.
I think it is a great idea to preserve you real estate and get the mortgage paid.
Depending upon the amount of space used by the roomers, you will be able to deduct a portion of the interest, a portion of the taxes, and a portion of the utilities against the rent received.
Note that NO PORTION of common rooms are deductible. therefore, you can only use the space used exclusively by the tenants. Therefore, even if they have full run of the house, the only deductible portion is the square footage of their rooms and any private baths, closets, garage, etc.
Get hold of Form T776 and the government's own pamphlet on rental houses. You will also get a lot by going to www.centa.com If you click on Income tax Guide and read the rental chapter, it will give you good information.
You should also come out for our FREE seminar this Thursday at 1764 West Seventh in Vancouver at the Cartier Partners Office.
Read the following:
Fred Snyder and I are giving a free seminar on making your CANADIAN mortgage interest tax deductible at our new office at 1764 West 7th in Vancouver.
When: Every Thursday Night
Time: 7 to 9 PM
RSVP: phone (604) 731-8900 to reserve (limited to 15 people)
My time is still spent at
108-100 Park Royal South
West Vancouver, BC
(604) 980-0321
david ingram
===============================================================
Answers to this and other similar questions can be obtained free on Air every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Cartier Partners and I will be hosting an INFOMERCIAL but LIVE talk show called "ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the internet at
www.600AM.com
This from ask an income tax immigration planning and bankruptcy expert consultant guru or preparer from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate gambling refunds for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, Indonesia, Egypt, Antarctica, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
income tax wizard wizzard guru advisor advisors experts specialist specialists consultants taxmen taxman tax woman planner planning preparer of Alaska, Alabama, Arkansas, Arizona,
California Denver Colorado, Connecticut,
Delaware District of Columbia Miami Florida,
Garland Georgia, Honolulu Hawaii, Idaho, Illinois,
Indiana Des Moines Iowa Kansas Kentucky,
Louisiana Bangor Maine Maryland
Boston, Massachusetts, Michigan, Minnesota,
Mississippi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Jersey,
New Mexico,New York, North Carolina,
North Dakota, Ohio, Oklahoma, Oregon.
Paris, Rome, Sydney, Australia Hilton
Pennsylvania, Rhode Island, Rockwall,
South Carolina, South Dakota, Tennessee,
Texas, Utah, Vermont, Virginia,
West Virginia, Wisconsin, Wyoming,
British Columbia, Alberta, Saskatchewan,
Manitoba, Ontario, Quebec City,
New Brunswick, Prince Edward Island,
Nova Scotia, Newfoundland, Yukon and
Northwest and Nunavit Territories,
Mount Vernon, Eumenclaw, Coos Bay
and Dallas Houston Rockwall Garland
Texas Taxman and Tax Guru and wizzard
wizard - David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321
[email protected]
www.centa.com www.david-ingram.com
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 & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/467c3498/attachment.htm
---------------------- multipart/alternative attachment--
What's Related