Discussion:Re: Mortgage on second home in Canada
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Discussion Forum Index --> Advanced Tax Questions --> Re: Mortgage on second home in Canada
Discussion Forum Index --> Tax Questions --> Re: Mortgage on second home in Canada
| 8 March 2008 | |
| I have a taxpayer who is US permanent resident, has also a house in Canada, which he used to live few years ago. Can he claim the mortgage interest paid to a Canadian bank and the property tax payment? Going forward, is he better of claiming mortgage interest or renting the place? What are the advantages and disadvantages of renting this property? Please advise and thanks for the help.
abstax | |
| 8 March 2008 | |
| if you mean 'he has more money' tell him to sell the dadgumn place | |
| 8 March 2008 | |
| He needs to file tax return back in Canada as a non-resident...If he rents he will show it as investment property with income and all the expenses including mortgage interest...if he does not rent then he needs to keep filing zero tax return to show the ownership...taxwise the best way to handle this is to keep the house and when he moves back to Canada, live there for 2 years and then sell it as principal residence and no tax owed...I do not know his situation so he should contact a tax guy in Canada to get good advice... | |
| 8 March 2008 | |
| Kevin,
Per him, he is not able to sell the property, he also has equity line of credit on this property in Canada. Can he deduct these interest and mortgage on Sch-A? Another question that he has, what if he stop making the payment all together in Canada since the amount he owes is much higer than his equity? Can they come after him in the U.S. for the debt? I did not give him any suggestion on this issue. Any info on this matter is higly aappreciated. Thanks | |
| 10 March 2008 | |
| They can not go after him in US...they can only claim against his property or income in Canada...he needs to discuss this with his tax consultant in Canada... | |
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