This is a multi-part message in MIME format. ---------------------- multipart/alternative attachment QUESTION: As it seems impossible to get a mortgage for a rental property with less than 25% down, we are considering purchasing the property as our = residence first, obtaining a 5% mortgage on that basis, and then renting it out = later. Does this course of action have adverse tax consequences? =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D david ingram replies: Tens of thousands of people have done just that when they have bought a = house with little down and then being forced to move because of job = transfer, divorce or other special circumstances. =20 And likely tens of thousands of people have tried to make it look like = they were going to move into a house to get a high ratio mortgage and = then have rented the property out. Others (in the states and Canada) = have used RRSP or IRA funds to buy their homes and then moved out and = rented them out. It is hard to prove that your intent was not legitimate but I have to = advise you that "IF" something goes wrong and you default and the = mortgage company finds that you never intended to live in the house, = there is a chance that you could be charged with obtaining money under = false pretences. do I know anyone who has been charged? NO! But the = possibility exists and you might want to obtain some good legal advice = before you get a mortgage under these circumstances. Your question is Canadian Specific but you have an Australian email = address. Hope this helps you in your decision. Oh, by the way, there are no adverse tax consequences. David Ingram's US/Canada Services US / Canada / Mexico tax and working Visa Specialists US / Canada Real Estate Specialists 108-100 Park Royal South West Vancouver, BC, CANADA, V7T 1A2 Calls accepted from 10 AM to 10 PM 7 days a week Res (604) 980-3578 Cell (604) 657-8451 Bus (604) 980-0321=20 [email protected] www.centa.com 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 & = the author and any and all non-contractual duties are expressly denied. = All readers should obtain formal advice from a competent financial, or = real estate planner or advisor & appropriately qualified legal = practitioner, tax or immigration specialist in connection with personal = or business affairs such as at www.centa.com. If you forward this = message, this disclaimer must be included." This from "ask an income tax and immigration and bankruptcy expert" from = www.centa.com or www.jurock.com or www.featureweb.com. Canadian David = Ingram deals daily with tax returns dealing with expatriate: multi jurisdictional cross and trans border expatriate problems for the = United States, Canada, Mexico, Great Britain, the United Kingdom, = Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, Indonesia, Egypt, = Antarctica, 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, American and = Canadian and Mexican and any of the 43 states with state tax returns, = etc. income tax wizard wizzard guru advisor specialist consultant taxman = Alaska, Alabama, Arkansas, Arizona, California, Colorado, = Connecticut, Delaware, District of Columbia, Florida, 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. Pennsylvania, Rhode Island, South Carolina, South = Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, = Wisconsin, Wyoming, British Columbia, Alberta, Saskatchewan, Manitoba, = Ontario, Quebec City, New Brunswick, Prince Edward Island, Nova Scotia, = Newfoundland, Yukon and Northwest and Nunavit Territories, Mount = Vernon, Eumenclaw, Coos Bay and Dallas Houston Rockwall Garland Texas = Taxman and Tax Guru and wizzard wizardYour name has been added to our = email list because of an enquiry we have received, we may not answer = your question but=20 another similar question will be as we lump them. You may find more answers at www.centa.com David Ingram of the CEN-TA REALTY Group US / Canada / Mexico tax and working Visa Specialists US / Canada Real Estate Specialists 108-100 Park Royal South West Vancouver, BC, CANADA, V7T 1A2 (604) 980-0321 - Fax 913-9123 [email protected] www.centa.com www.david-ingram.com ---------------------- multipart/alternative attachment An HTML attachment was scrubbed... URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/afd3cd95/attachment.htm ---------------------- multipart/alternative attachment--
