Sent: Saturday, November 26, 2005 9:17 AM
To: taxman at centa.com
Subject: Purchase of second property
Hello David,
I was hoping you could point me in the right direction...
I purchased a home 2 1/2 years ago that I currently rent out,
it's also listed as my principle residence, and yes I am using
the interest on the mortgage as a tax deduction thanks to your
Thursday night seminars. I would also like to purchase a studio
condo unit and rent it out, I have the cash and could buy it
outright but thought it wiser to take out a line of credit or
HELOC against my current home so that I may right off the
interest on the loan. The condo is under $25,000 and I was just
wondering if this is the best way to go...?
Kind regards,
P XXXXXXXXXXX.
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david ingram replies:
Unless you lived in the rented home first, it can not be declared
a principal residence but I think that you did and the home is in
the Princeton area and was your residence.
If you borrow money to buy the condo, it will be a deduction but
do NOT get caught up where you are paying 5 or 6 percent and only
getting one and a half or two.
Unless you are getting a better return on the money, you should
likely pay for the condo.
Have you got your free written financial plan from Fred Snyder
yet. That is where you should start, especially if you have been
to one of the seminars already. Call (604) 731-8900 and make an
appointment.
===============================
Answers to this and other similar questions can be obtained free
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Every Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram am
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Those outside of the Lower Mainland will be able to listen on the
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Callers to the show and questioners on this board can also attend
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idea.
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