My_question_is: Canadian-specific
Subject: Paying of Mortgage - Incorporated
Expert: taxman at centa.com
Date: Tuesday November 01, 2005
Time: 02:16 PM -0800
QUESTION:
I am an incorporated professional. In brief I have a house mortgage of 310k
and non registrered investments of 250 k which would involve minimal
personal taxes if sold. (plus RRSP of 350k)
In my corporation I have 100k cash. I also have 100k in real estate assests
with 60 k owing on line of credit.
I know there are multiple ways of approaching paying off the mortage / or
making the interest dedutible but not sure which way to proceeed.
Suggestions?
always find your comments very educational
=======================================================================
david ingram replies:
Cash in the $250K of non-registered investments. Pay down the mortgage,
even if you have a large penalty.
If you want the investments back, borrow money via a HELOC to buy back the
investments. Then take the investment income and the regular payments to pay
off the balance in a couple of years.
Read Bulletin IT-533 for the government's viewpoint;
http://www.cra-arc.gc.ca/E/pub/tp/it533/README.html
Read my November 2001 Newsletter at www.centa.com top left hand box.
It will give you some more ideas and of course, you could do it in a couple
of months if you were not incorporated. If you did not have the $250K, I
would be telling you to stop using the corporation for a year or two.
Coming to three or four of the Thursday Evening Seminars will also help.
I am also available for individual consultations at a fee of $400 per hour
(plus GST).
However, 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, I, david ingram am a regular
guest on Fred Snyder of Dundee Wealth Managers' 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 <http://www.600am.com/>
Call (604) 280-0600 to have your question answered. BC listeners can also
call 1-866-778-0600.
Callers to the show and questioners on this board can also attend the
Thursday Night seminars on finance and making your Canadian Mortgage
Interest deductible.
Every Thursday Evening, Fred Snyder of Dundee Wealth Management conducts one
of 17 different financial seminars in the boardroom of his office
Time: 7:00 to 9:30 PM
Date: Every Thursday evening
Place 1764 West Seventh
Vancouver (corner of Burrard)
Phone (604) 731-8900 to register
No cost - no obligation
Topics always cover mortgage interest as a deduction
other topics - getting the mortgage, estate planning, critical care
insurance, income taxation, differences between stocks and bonds, and
usually the most innovative HELOC mortgage offered in Canada from Manulife
Bank
If you are starting in downtown Vancouver and do not want to go home first,
one of the excellent THAI HOUSE restaurants is in the same building and
makes a nice start to the evening.
I, david ingram, manage to make three out of 4 of them to cover mortgage
interest as a deduction and give the class an adding test.
This from "ask an income tax and immigration expert" from www.centa.com
<http://www.centa.com/> or www.jurock.com <http://www.jurock.com/> or
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Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK,
GB, and any of the 43 states with state tax returns, etc. Rockwall, Dallas,
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Tips, Income Tax and Immigration Wizard Income Tax and Immigration Guru
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This from "ask an income tax and immigration expert" from www.centa.com
<http://www.centa.com/> or www.jurock.com <http://www.jurock.com/> or
www.featureweb.com <http://www.featureweb.com/> . David Ingram deals on a
daily basis with expatriate tax returns with:
multi jurisdictional cross and trans border expatriate problems for the
United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait,
Dubai, Saudi Arabia, Thailand, Indonesia, 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, and any of the 43 states with state tax returns, etc. Rockwall, Dallas,
San Antonio and Houston Texas
Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration
Tips, Income Tax and Immigration Wizard Income Tax and Immigration Guru
Income Tax and Immigration Consultant Income Tax and Immigration Specialist
Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist
expert preparer consultant expatriate anti money laundering money seasoning
FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border transactions
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