Tax strategy for: Couple no kids, 3 properties (1 as main residence plus 2 invested)
Hello,
We will be hiring a tax expert in the next 2 weeks but wanted to get a high level view of what our tax strategy will be down the road from the RFD community.
We are a couple with no kids living in Montreal. Here is our property ownership status:
-As a couple: Principle residence in where we live
-Him: Condo downtown currently rented
-Her: Condo in the suburbs currently rented
My question here is from a tax-efficiency perspective, should we be leveraging capital from the two investment properties and apply that sum towards the mortgage of our principal residence? Do tax rules (assuming Federal since provincial might vary) allow us to do this and allow us to deduct mortgage interest from our rental property?
I'm not sure if this is in fact what we know as the famous Smith Maneuver or not.
Like I said, just trying to get a feel but we know the real answer will come from the tax experts we will be hiring.
We will be hiring a tax expert in the next 2 weeks but wanted to get a high level view of what our tax strategy will be down the road from the RFD community.
We are a couple with no kids living in Montreal. Here is our property ownership status:
-As a couple: Principle residence in where we live
-Him: Condo downtown currently rented
-Her: Condo in the suburbs currently rented
My question here is from a tax-efficiency perspective, should we be leveraging capital from the two investment properties and apply that sum towards the mortgage of our principal residence? Do tax rules (assuming Federal since provincial might vary) allow us to do this and allow us to deduct mortgage interest from our rental property?
I'm not sure if this is in fact what we know as the famous Smith Maneuver or not.
Like I said, just trying to get a feel but we know the real answer will come from the tax experts we will be hiring.