Mortgage Interest Deductability In Canada
This is a multi-part message in MIME format. ---------------------- multipart/alternative attachment QUESTION: I run a home based business and as a result I deduct a % of the interest on my mortgage (first mortgage). I now have a 2nd mortgage (secured LOC). Is the equivalent % of interest I have paid on this 2nd mortgage also deductable? Thanks you. ============================================ david ingram replies: The LOC is not deductible as part of the purchase of the house because you have added it. Therefore, it is either not deductible period because you borrowed the money for a trip to Hawaii or for something personal. OR It is all (100%) deductible because you borrowed it to finance your business activities. It also may be 25 /75 or 50 /50 or 40 / 60 deductible if you borrowed 40% for business expenses and 60% for personal reasons. Goto www.centa.com and read the Nov 2001 newsletter about making mortgage interest deductible. You can make it all deductible (might take four or five years) if you are self-employed with business expenses. -------------------------------------------------------------------------------------------------------------- I actaully answered this twice - a little different each time - this is the other answer I gave: ======================================================== david ingram replies: The Line of Credit (LOC) would be 100% deductible if you borrowed it for stock in your business or other business expenses. If you borrowed it for a vacation to Hawaii, none of it would have been deductible. At the same time, if you are in business and have expenses, you can use the techniques found at www.centa.com in the Nov 2001 newsletter to make ALL the interest deductible (essentially use business income to pay down the existing mortgage and borrow money for business expenses using a LOC ort mortgage on the property). Good luck! =========================================================== David Ingram's US/Canada Services US / Canada / Mexico tax and working Visa Specialists US / Canada Real Estate Specialists 108-100 Park Royal South West Vancouver, BC, CANADA, V7T 1A2 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." This from "ask an income tax and immigration and bankruptcy expert" from www.centa.com or www.jurock.com or www.featureweb.com. 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You may find more answers at www.centa.com David Ingram of the CEN-TA REALTY Group US / Canada / Mexico tax and working Visa Specialists US / Canada Real Estate Specialists 108-100 Park Royal South West Vancouver, BC, CANADA, V7T 1A2 (604) 980-0321 - Fax 913-9123 [email protected] www.centa.com www.david-ingram.com ---------------------- multipart/alternative attachment An HTML attachment was scrubbed... URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/2ae1ca19/attachment.htm ---------------------- multipart/alternative attachment--
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