Tax Saving Ideas with Rental Property

maxineli wrote: ↑ Hello

I have a primary residence with mortgage and few rental properties each with at least 20% down.

I currently have no HELOC, just simple uninsured mortgage on each.
I deduct 100% of expenses (property tax, utilities, mortgage interest etc.) on my rental properties.

Is there any tax saving ideas/tricks I can look into to make use of primary resident mortgage or rental properties mortgages for tax savings?

AppleDogwood wrote: ↑
Do you have a mortgage on your primary residence? If you do, you can cash dam.

Rents dump into your Primary Mortgage
Primary HELOC (readvanceable) dumps to pay rental mortgages & expenses

You effectively get to "double dip" the interest charges for the rental mortgage & expenses AND the borrowed money you are financing it with (the Primarily Residence HELOC)

Upside -> You are increasing your tax deductible carrying charges and paying down your principal mortgage faster
Downside -> Paperwork involved (making sure you have a clean HELOC and proper records) . Interest rate risks and HELOCs are callable (pretty low risk)

ediasn wrote: ↑ If u have a heloc on your principal and rental mortgage rayments ..does that mean u can deduct interest from that heloc...Grey area for sure that can be challenged by cra.

AppleDogwood wrote: ↑ Do you have a mortgage on your primary residence? If you do, you can cash dam.

Rents dump into your Primary Mortgage
Primary HELOC (readvanceable) dumps to pay rental mortgages & expenses

You effectively get to "double dip" the interest charges for the rental mortgage & expenses AND the borrowed money you are financing it with (the Primarily Residence HELOC)

Upside -> You are increasing your tax deductible carrying charges and paying down your principal mortgage faster
Downside -> Paperwork involved (making sure you have a clean HELOC and proper records) . Interest rate risks and HELOCs are callable (pretty low risk)