You’re probably curious why Seatle homeowners can deduct their mortgage interest to reduce their tax bills, but Canadian homeowner across the border in Vancouver cannot make their mortgage tax deductible?

You may be surprised to hear that you can make all of your mortgage interest tax deductible in Canada!

The wealthy people in this country have been deducting their mortgage interest for years to reduce their tax bills and the reason why you may not be deducting your mortgage interest to save tax is simply because you either don’t know about it or you think it’s not legal.

Well, let me repeat again…

You CAN make your mortgage interest tax deductible in Canada! It is perfectly legal and I can make that happen for you.

Great example from the Globe & Mail

I’ve taken money out of my line of credit to invest in stocks. The stocks I’m currently in, however, do not pay a dividend. Can I still deduct the interest I’ve been paying on my loan when I file my taxes? -K.W.

It depends.

According to the Canada Revenue Agency, interest on money borrowed for investment purposes is tax deductible “generally only as long as you use it to try to earn investment income, including interest and dividends.”

But there’s a lot of wiggle room here. Even if the company pays no dividends now, you can still deduct the interest if there is a “reasonable expectation” of receiving dividends down the road. For example, if a company says it will reinvest its cash flow for the foreseeable future and will only pay a dividend when operational circumstances permit or when it believes shareholders can make better use of the cash, the interest is tax deductible.

On the other hand, if a company has an explicit policy of not paying dividends now or in the future, interest would not be tax deductible. “Each situation must be dealt with on the basis of the particular facts involved,” the CRA says. For more information, contact the Canada Revenue Agency or do a Google search for CRA bulletin IT-533, titled “Interest Deductibility and Related Issues.”

Take a look at these benefits:

• Reduce Taxes
• Get Huge Refund Checks
• Pay off Your Mortgage Faster
• Retire Wealthy

This creative, legal financial strategy will generate free annual tax refunds for many years into the future for any Canadian who has a mortgage.

If you have interest to pay anyway, why not at least convert it to interest that gives you generous, free, gratis, no charge, tax paid gifts each year?

Click here to complete my online application form to make your mortgage tax deductible!

The tax refund cheques come every year, they are free, there is no tax on them and it is perfectly legal.

These are not small tax refunds. Your mortgage payments for a year total a huge number. As much as 70% or 80% of that huge number is the interest you are paying the bank. 80% of a huge number is also a huge number.

Let’s say it’s $10,000 for our Mr. Joe. Joe likes tax deductions. Every year he buys a $10,000 RRSP. (He has to first earn an extra $20,000 for the year so he can give up half to all the governments who want their taxes, leaving him $10,000 to buy his RRSP).

So Joe buys his $10,000 RRSP and claims a $10,000 tax deduction when he submits his income tax return. A few weeks later, Joe gets a lovely cheque from the taxman for $4,000 being 40% of the tax deduction he claimed. That’s a 40% return on his “investment” which is excellent performance.

What Joe doesn’t know is that in his annual mortgage payment is another $10,000 tax deduction, which is free for arranging. And he doesn’t have to go and earn another $20,000 before tax to get it.

Learn how easy and inexpensive it is to convert an expense he is already paying, his mortgage interest, into a tax deduction that will yield equivalent benefits to what he would receive if he bought an RRSP.

If you have a mortgage you could have the same advantages as Joe. It’s totally up to you. You can ignore it and continue wasting your money or you can make it tax deductible and retire wealthy.

The choice is yours, do nothing or….

Click here to request more info

Mark Fidgett, Your Vancouver Mortgage Broker For Life


P.S.  Who’s the next person you know who would like to make their mortgage interest tax deductible in Canada? Be sure to give me a call so we can help them get on that   path!