Rental Property financing
I would like some advise on a rental property and mortgage interest write-off.
I am receiving a property (currently their principal residence) from my parents as a gift with $1 value on transfer. After the property is transferred, I plan to add the maximum allowable mortgage (80%) to be able to write off the mortgage interest.
Since I am receiving the property as a gift, the "cost" on paper would be $1. Would the $1 cost cause any problems when I claim mortgage interest expense on the rental? Will this be flagged as income splitting?
Thanks in advance for your advice!