How to make your Mortgage tax Deductible

[Tracer]

I spent hours trying to come up with my own examples. After failing miserably, I am shamelessly stealing this link. Read through it and contact the person who wrote it.

I am not an expert in this field. The person who wrote the column is well respected and knows his stuff. I am in the process of doing this and am just in the process of seeing how much equity I can pull and then will be investing it in a mortgage investment company most likely.

I have some other properties, and the best thing is writing off the expenses including the interest. I had a "leaky condo" (if you're in BC you know about it) that cost over 16000 to get fixed. I watched all the home owners shell out and get the "gracious" no interest loan from the government. Mine was rented at the time. I wrote all the repairs off as an expense (%100 legit ) and had a net cost of $9600. Homeowner net cost $16000. Net savings $6400. Government favours business and you should do whatever you can to take advantage of the opportunities that are provided. The attached is one of those opportunities.

*** it is not without risk, as you are using your equity to invest, to get the deductions. If your investment goes down the tubes, so goes your equity.


How to make your home mortgage tax deductible

After reading, go to the home page and contact him. You can dothis yourself, read his book, or talk to your own financial advisor about it. This is not a big secret and your own advisor should be able to help with this.

[willy]

Should we consider this a hot deal ???

[to_munda]

wrong forum.
this is NOT a hot deal!!

[bubboteaboy]

methinks tracer is just trying to promote his own crap.

[wild]

me agree locky locky

[BMR]

Originally posted by willy@Mar 6 2004, 02:59 PM
Should we consider this a hot deal ???

Maybe Staples has a book about it that we can pricematch with Futureshop before it becomes OOS !!!

[milhaus]

Look guys. Tracer made this post in response to requests for information re: saving money on mortgages. If this is not a hot deal, then fine, move the post, but please have some evidence before you start accusing people of trying to promote his own work.

See below post for details: Mortgage Thread

He's just trying to help. . . .

[goaler845]

The fact that mortgage payments are not tax deductible actually make them a "tax exempt" investment. By paying lump sums into your mortgage, the fact that interest is not deductible means that you are essentially eliminating tax on every dollar contributed. Because interest charged on principal is now less...you actually "earn" the interest x lump sum tax free.

[Tracer]

you all are just as bad as fatwallet.com. If you knew what you were talking about, anyone with a mortgage would save hundreds and thousands of dollars. Read the link. If you don't like it, don't do it.

I appreciate all the deals people put up and have bought the axim, sd cards, price match etc. But that is just for fun. It's a hobby.

Be chumps and don't take advantage but this truly is how you make money in this world and I will put my tax advantages up against any hot deal.

Oh, and I have nothing to do with the site I linked to.

I say whatever.

[Kenneth]

If you have a low income; I know in Ontario your property taxes for your primary residence is deductible.

I'm not sure under which section though.

[HammerJoe]

Hey Tracer, care to explain how this works?

If it saves me money I am itnerested.

Anyway that newsletter does not explain anything, it just says it is possible to deduct interest.

I want to know how it is done, if it is legal.

Thanks.

[zoro69]

With just skimming over the link I believe all it is saying is to arrange your affairs ofor maximum tax benefit. EG, your going to make a $5000 investemnt, instead pay $5000 against your mortage and borrow $5000 for the investmetn where the interest will be deductable, or keep your business financed to the hilt in favour of paying dwon non deducatble debt. Nothing new or ground breaking.

[grant]

Originally posted by Tracer@Mar 6 2004, 10:37 AM
I have some other properties, and the best thing is writing off the expenses including the interest. I had a "leaky condo" (if you're in BC you know about it) that cost over 16000 to get fixed. I watched all the home owners shell out and get the "gracious" no interest loan from the government. Mine was rented at the time. I wrote all the repairs off as an expense (%100  legit ) and had a net cost of $9600. Homeowner net cost $16000. Net savings $6400.

From Ingram's centa site:

Leaky condo repairs are a conundrum.

If you bought the condo to rent and it turned out to be leaky, the $65,000 of repairs is likely / should be a deduction.

If, on the other hand, you were living in the unit and some one told you that the repairs were deductible if you were renting it out and you moved out, rented it and then paid for the repairs, the repairs are "NOT" deductible but  have to be added to the Adjusted Cost Base and can be depreciated when and if you make an annual profit.

If you were LIVING in your residence when the leaks were discovered, you could not claim the assessment as a deduction, no matter what you were doing with your mortgage.

Since you were RENTING this property, the assessment deductible, but it always was and so was your mortgage.

[consumerPI]

just read this and it's a good reminder for people.

[gei]

investing with your home equity as you build it is an old tactic for effectively "writing off" your mortgage interest.

however its very risky.. only works well when the markets are doing well.