QUESTION:
Someone told me that they found an article on your website about using a
revolving line of credit for your revenue (rental) properties.
This was my understanding of it (example):
- your renters would pay you $2000/month
- the line of credit against the rental house / mortgage would increase by
$2000/month.
- you take the $2000 from the renters and apply to your personal private
mortgage.
As I see, the advantages of this would be that you would pay of your
personal mortgage first and the expense on your interest for your rental
property would be the maximum, as the mortgage for that property would not
decrease until your private mortgage is paid off (thus a higher deductable
amount for the rental property).
Is this legal? Can it be done? And is there an article on your website
that explains this in more detail?
Thank you,
Kxxxxxx
==================================================
david ingram replies;
You can find the newsletter you are referring to by going to www.centa.com
and accessing the November 2001 newsletter in the top left hand corner box.
Go to Newsletters - Go to 2001 - Go to November.
This was originally written by me in October 1976. Thousands of people have
used the method to Make the equivalent of their mortgage tax deductible.
And, three years ago, the Supreme Court of Canada ruled in its favour in the
John Singleton case.
The CRA has also issued Bulleting 533 which deals extensively with the
concept.
Fraser Smith wrote a book called the Smith Manoeuvre which you can get and
read for another variation which applies to a lot of people.
If you are in the Vancouver area, "Every" Thursday night we explain it as
follows:
Every Thursday Evening, Fred Snyder of Dundee Wealth Management conducts one
of 17 different financial seminars at 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
Go For it!
===============================
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
permanent 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.
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
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Home office at:
4466 Prospect Road
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Cell (604) 657-8451 -
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Calls welcomed from 9 AM to 9 PM 7 days a week (please do not fax or phone
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<http://www.david-ingram.com/>
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