My_question_is: Canadian-specific Subject: Vacation house in the Washington State, USA Expert: taxman at centa.com Date: Thursday December 16, 2004 Time: 04:53 PM -0800 QUESTION: Last Nov 2003, I bought a house in Blaine Wa. I paid $175,000 USD in full, I borrowed $230,000 CAD from my home equity line on my residence in Richmond BC. Can I deduct the mortgage interest on my Income Tax Return? I am a Canadian citizen. I did not have a mortgage on my residence until I bought the above mentioned property in Washington USA. I borrowed to buy an investment property. Thank you. ----------------------------------- david ingram replies: If this was an investment property and rented out, the Canadian interest would be deductible on Schedule E of the US 1040 NR return you would have to file and Schedule T776 which would be attached to your T1-General Canadian return to report the rental income. However, I believe that you are not renting it out because the subject matter on the line says vacation property and the mortgage interest to purchase a vacation property is not deductible in Canada although it is deductible for an American on their vacation properties whether in Canada or the US or Mexico or Spain. You can find out more about mortgage interest as a deduction by reading the Nov 2001 newsletter at www.centa.com. In addition, you can attend our free seminars on the subject at Fred Snyder's office at 1764 West 7th as follows: Every Thursday evening Fred Snyder and I hold a free seminar at Fred's office at 1764 West 7th (corner of Burrard in the Spence Diamond building) in Vancouver. The topics are: Seg funds and an alternative to the traditional RRSP. Making your mortgage income tax deductible Critical Care insurance for disasters. coffee and cookies of course. Phone 604-731-8900 to reserve your seat -and, you are welcome to bring your brother, your sister, your mother or father, your children, your best friend, your worst enemy or your own financial advisor who hasn't explained how to make your mortgage deductible. And Remember 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, Fred Snyder of Dundee Wealth Management and I, David Ingram will be hosting an INFOMERCIAL but 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/> Local calls are taken at (604) 280-0600 and Long Distance calls are taken at 1( 866) 778-0600 I do not know how far the LD line reaches. ========================================= 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 ImmigrationWizard 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 4789 4790 TDF-90 Reporting $10,000 cross border transactions ========================= Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Garland, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon. 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