US resident wants to rent out part of a fractional

I am planning to buy a fractional ownership condo in pender island. I am a us resident, canadian citizen. Should I pay for this in cash or should I get a mortgage? Is the interest and anything else tax deductible ie property taxes on my us return. I will be renting it out for approximately 30-50 % of the time. 
Thanks for your time.
david ingram replies:
Your first liability is to Canada. You (and your spouse if joint ownership) must file a Canadian rental return under section 216(4) of the income tax act. You each also need to fill out a form NR-6 and have an agent sign it BEFORE your first day of rental in Canada.
After that, you will also need to fill out a Schedule E for your US 1040. You will likely use the vacation property method of breaking down the expenses. The part of the intetrest and property taxes which are not deductible on your Schedule E can be deducted on your schedule A.
If you have to pay tax to Canada on the rental, you can claim the taxes on your US tax return as a foreign tax credit on schedule 1116.
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At 08:53 AM 8/17/2004 -0700, you wrote: 
You have sent a question through to the list somehow and I cannot read it.
Something about fractional ownership.
If still a problem please resend to this address.
davidingram at
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