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 US / Canada Real Estate Specialists Home office at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 9 AM to 9 PM 7 days a week (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. 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