Real Estate

Heloc interest tax deductible condo

  • Last Updated:
  • Oct 20th, 2019 6:27 pm
Banned
Apr 7, 2019
94 posts
19 upvotes

Heloc interest tax deductible condo

Hi so i have some questions regarding tax deductions. I have a heloc which i have used 50k for investment of condo bought last year. The interest I am paying for the loan how and when is interest covered. The bldg will be complated around 2021. So right now i pay interest.

When i do my tax can i wright it off in next tax the interest or is it only when condo is made and then i can write off. The bldg basically get paid by check fron my bank the downpayments. So i have record of the money parts. Just wanted advice how works
1 reply
Deal Addict
Mar 3, 2018
3476 posts
3998 upvotes
GTA
Any interest you are paying now until closing is capitalized. Meaning it is added to your adjusted cost base. It would reduce any capital gain you made in the future. Once the condo is closed the interest charges would be deductible against rental income.

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