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.
Hxxxxxxxxxxx
============================
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.
==============================
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
<http://www.600AM.com>www.600AM.com 
Local phone calls to (604) 280-0600 - Long distance calls to 1-866-778-0600. 
Old shows are archived at the site.
===========
This from ask an income tax immigration planning and bankruptcy expert consultant guru or preparer from <http://www.centa.com>www.centa.com or <http://www.jurock.com>www.jurock.com or <http://www.featureweb.com>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 
<mailto:davidingram at shaw.ca>davidingram at shaw.ca
<http://www.centa.com>www.centa.com <http://www.david-ingram.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 <http://www.centa.com>www.centa.com. If you forward this message, this disclaimer must be included."
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 shaw.ca
<<<<
------------------------------------------------------------------
Harisch Sood
Director, Corporate Business Development
Director, SoC Venture Fund Synopsys, Inc. 
1 650 584 1879 (voice) 700 East Middlefield Road, C2.244D 
1 650 584 4396 (fax) Mountain View, CA 94043-4033
** Synopsys Venture Fund information: www.synopsys.com/corporate/venture.html
<<<<
------------------------------------------------------------------
Harisch Sood
Director, Corporate Business Development
Director, SoC Venture Fund Synopsys, Inc. 
1 650 584 1879 (voice) 700 East Middlefield Road, C2.244D 
1 650 584 4396 (fax) Mountain View, CA 94043-4033
** Synopsys Venture Fund information: www.synopsys.com/corporate/venture.html
-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/20040818/a06f518f/attachment.htm

Comments (0)


CEN-TA Cross Border Services - Tax, Visas, Immigration
http://www.centa.com/article.php/UsCaWeekofMon20040816001287.html