Mortgage Interest Calculation on Rental Property
I am pretty confident I have this right but I was hoping to see if anyone else has been in a similar situation and could share their experience.
The mortgage on my rental property is in a fixed payment variable rate term with TD. With the recent rate hikes, I am currently accruing about $200 more interest per month than my payment. I got TD to send me a statement of interest paid (I hold onto these for the CRA), but they are stating interest paid, not interest accrued.
My question is, I think I should be reporting the interest accrued to the CRA, not the interest paid, right? I think what is happening is the bank is charging me $2000 in interest, I pay $1800 cash, and then I am effectively reborrowing the other $200 to pay the rest. So if I think of it as my rental business being invoiced for $2000, and then paying that with some cash and some borrowed money, then I think the correct amount to claim to the CRA would be $2000.
Does that logic make sense? Has anyone else dealt with this before, and more specifically, does anyone know of a more detailed statement I can request from TD to give me the interest accrued rather than interest paid? Or am I stuck making my own spreadsheet calculating loan balances every time I make a payment or there is a rate change?
Thanks for any input
The mortgage on my rental property is in a fixed payment variable rate term with TD. With the recent rate hikes, I am currently accruing about $200 more interest per month than my payment. I got TD to send me a statement of interest paid (I hold onto these for the CRA), but they are stating interest paid, not interest accrued.
My question is, I think I should be reporting the interest accrued to the CRA, not the interest paid, right? I think what is happening is the bank is charging me $2000 in interest, I pay $1800 cash, and then I am effectively reborrowing the other $200 to pay the rest. So if I think of it as my rental business being invoiced for $2000, and then paying that with some cash and some borrowed money, then I think the correct amount to claim to the CRA would be $2000.
Does that logic make sense? Has anyone else dealt with this before, and more specifically, does anyone know of a more detailed statement I can request from TD to give me the interest accrued rather than interest paid? Or am I stuck making my own spreadsheet calculating loan balances every time I make a payment or there is a rate change?
Thanks for any input