Is Raw Property Investment Interest Non - Taxable?

by Ken
(Ottawa, Canada)

Ken,

Just found this website that I'm going to look around myself when I get home. I had never seen this site before but it looks like a great place to ask your questions:

1. I purchased raw land in another province as an investment property. As the mortgage on the land is an investment loan, can I claim the mortgage interest paid as a tax deduction? If I do claim the investment loan interest as a deduction against my other income, what are the tax implications on the sale of the raw land?

Comments for Is Raw Property Investment Interest Non - Taxable?

Click here to add your own comments

Jan 18, 2013
 RE: Is Raw Property Investment Interest Non-Taxable...
by: Tom Karadza

Thanks for the question!

We are not accountants so please double check this!

From our experience, you can always write off the interest on loans/mortgages/credit lines used for investment purchases. And, from our experience, it doesn't have any tax implications on the sale of the investment. Having said that, we've never investing in raw land before so perhaps there are some differences. A good accountant should be able to guide you fairly easily. The only time we've had "tax implications" is when we take depreciation of the asset while we own it (for example, depreciating the value of a property on a piece of land).

Hope that helps!!

Tom.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Submit A Question.

                  

  Some Cool Free Stuff...

  Step 1:

Grab a free digital copy of our real estate investing book, Income  For Life For Canadians, right here. This book has been downloaded over 22,597 times and has helped hundreds of investors kick-start their investing with simple and straight forward strategies that you can implement right here in Canada.

You'll also receive our weekly [Your Life. Your Terms.] email newsletter with the latest investing updates and videos.

  Step 2:

Free Weekly Investing Videos & Articles: Get the latest updates and join the over 10,000 other Canadians enjoying the weekly [Your Life. Your Terms.] email newsletter. The email is sent out each Thursday. And as a little bonus we'll give a FREE digital copy of the book, Income For Life For Canadians, too!

Your Life. Your Terms.


  Step 3:

Free LIVE Investing Class: Do you live in the Greater Toronto or Golden Horseshoe Area? Come out to our next introductory "Investing in Nice Homes in Nice Areas" Real Estate Class.

Get all the details by clicking here.

It's 90-minutes and you'll learn a ton - promise!Thousands of investors have now joined us for this class and the feedback has always been amazing.

Click here to get book

This book has been downloaded over 22,597 times and has helped hundreds of investors kick-start their investing with simple and straight forward strategies that you can implement right here in Canada.

  Click here to subscribe