QUESTION: My wife and I have a $300K mortgage (Manulife One account) that we have began converting into a tax deductible investment loan. Right now we are doing this by borrowing back the principal each month to invest it. We are looking to accelerate this conversion from good debt to bad debt by starting an unincorporated business (ala Cash Flow Dam strategy). My question is: if we purchase a cottage rental business or campground in a Parnership with my parents will we be able to still borrow from our Manulife One account to pay all the business expenses each month? Or is there a twist because my wife and I don't own 100% of the Partnership or asset (campground or cottage rentals)? --------------------------------------------------------------------------- david ingram replies: You can use the partnership income as well. Just watch your paper trail. You should also go to www.centa.com and read the November 2001 newsletter in the top left hand box. This was originally written in Nov 1976 and is the first known place where making a Canadian mortgage deductible is explored in print. --------------------------------------- David Ingram's US / Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists My Home office is at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://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 and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation in connection with personal or business affairs such as at www.centa.com <http://www.centa.com> . If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" David Ingram gives expert income tax & immigration help to non-resident Americans & Canadians from New York to California to Mexico family, estate, income trust trusts Cross border, dual citizen - out of country investments are all handled with competence & authority.
