How does CRA treat equity take out from Canada rental property already on 216 returns.
a) If used for buying another rental property
b) Cash take out
Thanks
Rental property equity take out
Moderator: Mark T Serbinski CA CPA
If you refinance a mortgage to use the extra funds for other purposes that for that rental property, then you cannot claim all the interest expense from the mortgage towards the rental expense on that property. You can only apportion the ammount.
It doesn't really matter what you use the funds for. Of course, if you buy additional Cdn rental property (it must be Cdn property), then the portion of interest you pay can go towards the rental expenses of the new property.
It doesn't really matter what you use the funds for. Of course, if you buy additional Cdn rental property (it must be Cdn property), then the portion of interest you pay can go towards the rental expenses of the new property.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 