Hi David If I consolidate my small business loan & rental investment loan with my home mortgage loan will I still be able to write off the interest? If so, will I still be able to use my line of credit to pay the interest on the business protion & rental protion of my new consolidated home mortgage? Thank you KXXXXX __________________________________________________________________________ david ingram replies: My suggestion to you is that you do not consolidate but arrange to have two mortgages. 1. One is your original home mortgage on which the interest is not deductible. This should be an OPEN mortgage with no restrictions on the prepayment of any monies. 2. The other is the business rental loan on which the interest is deductible. This should be a floating line of credit which can be increased on a monthly basis as required. As your business monies and rental monies come in, use those monies to pay down the first mortgage. Then, when you need money to pay rental property expenses and business expenses, simply borrow against the line of credit. Under this scenario, the total amount of money borrowed remains approximately the same, but the increasing interest on the line of credit becomes deductible. You can find out more by going to www.centa.com. Click on Newsletters, click on 2001 and click on November to read a 10 page dissertation on making your mortgage deductible. We will, of course be happy to help you arrange this combination of mortgages and deal with the situation. And to put it bluntly, if you can arrange to make the interest on a $100,000 mortgage deductible, you will save $2,000 a year of income tax. ANY CANADIAN WITH A CASH FLOW CAN ARRANGE TO MAKE THEIR MORTGAGE DEDUCTIBLE. Hope this helps. Your name has also been added to our newsletter list. david ingram - [email protected] <mailto:[email protected]> 108-100 Park Royal South West Vancouver, BC, CANADA, V7T 1A2 (604) 913-9133 - (604) 913-9123 www.centa.com <http://www.centa.com> Cell is (604) 657-8451 (10 AM to 10 PM seven days a week) US/Canada Real Estate Taxation Specialists US / CANADA / MEXICO Working Visa and Income Tax Specialists 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 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" --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.509 / Virus Database: 306 - Release Date: 8/12/03 --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.509 / Virus Database: 306 - Release Date: 8/12/03
