Is Mortgage Interest Tax Deductible? retirehappy.ca/mortgage-inter… via @RetireHappyBlog
Ellen Roseman
@ellenroseman
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Americans can no longer deduct mortgage interest if they do not use their home loan proceeds to purchase, build, or renovate a home. When can you deduct mortgage interest in Canada? (1 of 2)
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The short answer: You can't deduct mortgage interest payments on a principal residence in Canada. You can claim part of the mortgage interest paid if you use your principal residence to earn rental or self-employment income. (2 of 2)
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Most Canadians won’t be able to deduct the interest on their mortgage payments at tax time. But if you want to convert your mortgage interest to a tax-deductible expense, the easiest way may be to convert your principal residence to a rental property.
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A dedicated rental property is the most straightforward scenario for deducting mortgage interest. If you own a property that is rented full-time, you can deduct 100% of your mortgage interest costs for that property on your income taxes.