I saw this sign in downtown for someone who suggested that he has a way that can make mortgage payments tax deductible, I think that this is possible in the US, but here in Canada, is this the case?
Anyone heard this b4?
I saw this sign in downtown for someone who suggested that he has a way that can make mortgage payments tax deductible, I think that this is possible in the US, but here in Canada, is this the case?
Anyone heard this b4?
No, as far as I know. No morgage payments are tax deductable, must be in the US
Not unless you have a home office or run a home-based business. Then you may be able to claim part of your mortgage as a deduction.
They may be talking about a debt reallocation strategy where you reborrow the principle that is paid down monthly and invest it. Over time, this shifts your mortgage (non-deductible debt) into a tax deductible investment source. In the end, you have the same amount of debt, but all the interest is tax deductible at your marginal tax rate.
Last edited by lint; 06-12-2006 at 11:05 AM.
heloc that shit
It would only be the interest portion of your mortgage that is tax deductible under that (or any other) scenario.
sig deleted by moderator, click here for info
You still can't claim your mortage even if you have a home business. YOu can however claim a percentage of your utility bills..Originally posted by xrayvsn
Not unless you have a home office or run a home-based business. Then you may be able to claim part of your mortgage as a deduction.
A side note (you can claim your mortage payments in the U.S. (Go Canada Go) :P
Yeah, thats what I thought. Thanks guys for your replies.
Yes you can. Its based on sq/ftOriginally posted by modded46
You still can't claim your mortage even if you have a home business. YOu can however claim a percentage of your utility bills..
A side note (you can claim your mortage payments in the U.S. (Go Canada Go) :P
There are also those new condos in the Bridgeland area that have your office on the main floor and with that setup you can write off 50% of your mortgage.
Well I never actually went to a tax accountant but according to Ufile.ca you cannot claim mortage payments as tax write offs.
The only way it's possible on a primary residence is through something called the Smith Manouvere. Essentially a poster above mentioned this through reallocation.
Business use of home allows you to deduct valid business expenses.Originally posted by 89coupe
Yes you can. Its based on sq/ft
There are also those new condos in the Bridgeland area that have your office on the main floor and with that setup you can write off 50% of your mortgage.
The principle portion of the mortgage payment is not considered an expense.
I am in that situation now. Home business and this is what I do. A percentage of the sq ft of the home is used for the business. As a result, you are able to claim that percentage in anything that has to do with the home, phone, electrical, gas, INTEREST on the mortgage (you can not claim the mortgage itself just the interest), etc...Originally posted by modded46
You still can't claim your mortage even if you have a home business. YOu can however claim a percentage of your utility bills..
A side note (you can claim your mortage payments in the U.S. (Go Canada Go) :P
I love my accountant.
00redLUDE
Are you a professional corporation? Check pm pleaseOriginally posted by 00redLUDE
I am in that situation now. Home business and this is what I do. A percentage of the sq ft of the home is used for the business. As a result, you are able to claim that percentage in anything that has to do with the home, phone, electrical, gas, INTEREST on the mortgage (you can not claim the mortgage itself just the interest), etc...
I love my accountant.
The big tax advantage to Canada is that when you sell a house for a gain, it is exempt from tax under the principal residency deduction, there is no such tax law in the US, so all you Calgarians who owned property for the last 5 years and made 80% would be paying tax on that if you sold in the US.
And yes, you can claim the interest on your mortgage if you have a home office. Its based on the sq.footage as others here stated.
Originally posted by modded46
You still can't claim your mortage even if you have a home business. YOu can however claim a percentage of your utility bills..
A side note (you can claim your mortage payments in the U.S. (Go Canada Go) :P
Gotta love boost
I do the same thing...but didn't know about the INTEREST part of the mortgage.Originally posted by 00redLUDE
I am in that situation now. Home business and this is what I do. A percentage of the sq ft of the home is used for the business. As a result, you are able to claim that percentage in anything that has to do with the home, phone, electrical, gas, INTEREST on the mortgage (you can not claim the mortgage itself just the interest), etc...
I love my accountant.
I have a home based office, but I'm NOT self employed.
Principal repayments are always after tax. Ditto with borrowing money to invest, the interest you pay on the borrowed funds is the only part that's tax deductible.
George likes his Kung Pao spicy!
If you are not self employed, you are SOL unless your employer requires that you have a home office. They need to file a T5007 or something to disclose that fact to CRA.
Gotta love boost