Yes, you can deduct mortgage interest as well as property tax and maintenance from your investment property in Canada. If you own multiple units and you are the one managing them you should also open a property management company and charge your properties a management fee which is also tax deductible.

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Bought in 1996 for about 100k. assuming i use a realtor to sell the place....also how much would i have if i just sold the place and kept the money (i am an unemployed recent graduate so my only income as of yet is from rents (25k a year))....also,,, i want to get the tenants out of one of the units so i can renovate it and rent it for more (or leave it vacant) , what is the best way (legal) to get them to get them out (is it legal to break the lease for rennovation or if i plan to move into the unit?) should i offer money or pay for moving expenses...how long do i have to give them also---> i am planning on using the 1031 to purchase investment property in austin tx where i can get a far better %return, the problem is that the prop. tax is high (2.75%)...is the prop tax deductable on fed income tax? also...will i have to pay ca state income tax when i sell the prop in texas? if you can answer any of the question i would be greatful... peace

Gain on sale of property: If you keep the whole thing you will pay Long Term Capital Gain tax on roughly $400K. Work out Schedule D and you should get an idea of what the tax will be. Keep in mind you can lower that by improvements you made to the unit as well as any selling costs you incur. If you want to do a like-kind-exchange and realize a portion of the gain, get with an attorney to escrow. IRS is pretty strickt about Sec 1031 and if you get audited they may disqualify it. Removing tenants: This really depends on what you listed in your lease agreement. Most courts will require landlords to provide 60 day written notice for tenants to vacate premises. Talk to your tenant and explain what you're planning on doing and see what their response is. If it starts hostile and you want to avoid court, try with the moving expenses. If they're still hostile then you may have to spend the $200 for eviction and loose a month in rent. Property taxes: Fully deductible for Federal purposes. I don't know about your situation with CA. Are you a resident of TX or CA or part resident of both? You may be able to get a deduction in Ca.

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I own a lake-front cottage near grand bend, ontario canada that was recently appraised at $ 575,000. my question quite simply is should i sell it now because from what i understand real estate, especially luxury real estate like cottages are at their highest point right now for resale and they are expected to flatten out or even go down in prices over the next few years due to the uncertain economy. or do i keep it and ride the calm wave of the upcoming downturn in the economy and hope that after the downturn cottage prices go up even higher in the future. the cottage is only costing me maintenance at this time and property taxes and utilities, other than that it is completely paid for with no mortgages or loans against it. do i keep it and earn basically no return on the thing over the next 3 years anyhow until the economy turns around and prices head back up or sell it now and put the over $ 500k into a mutual fund or a interest bearing gic account and make some return on the thing

I think property prices are heading down, perhaps for years, but lake front cottages may be an exception. I would not expect it to appreciate in the short term. If you can get $575K for it, sell it. You can invest that the Central Fund of Canada, it will appreciate nicely.

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Bought in 1996 for about 100k. assuming i use a realtor to sell the place....also how much would i have if i just sold the place and kept the money (i am an unemployed recent graduate so my only income as of yet is from rents (25k a year))....also,,, i want to get the tenants out of one of the units so i can renovate it and rent it for more (or leave it vacant) , what is the best way (legal) to get them to get them out (is it legal to break the lease for rennovation or if i plan to move into the unit?) should i offer money or pay for moving expenses...how long do i have to give them also---> i am planning on using the 1031 to purchase investment property in austin tx where i can get a far better %return, the problem is that the prop. tax is high (2.75%)...is the prop tax deductable on fed income tax? also...will i have to pay ca state income tax when i sell the prop in texas? if you can answer any of the question i would be greatful... peace

Depending on when the lease is up you need to give them at least 60 days notice. If you want to relocate your tenants than what you are doing is acting in good faith and yes you could move them if they wish. But you have to move them to a place that is comparable to the same place they live in. http://www.hrfh.org/tenantlandlord.htm 1031 is a financial question and I have a great resource group I can get you in contact with who can answer all your 1031 questions. Your last questions is directed toward a tax consultant and again I have some resources I can direct you toward. If you need a some good comparables for your property and net sheet which can give you your bottom dollar. Contact me. Good luck.

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Bought in 1996 for about 100k. assuming i use a realtor to sell the place....also how much would i have if i just sold the place and kept the money (i am an unemployed recent graduate so my only income as of yet is from rents (25k a year))... also---> i am planning on using the 1031 to purchase investment property in austin tx where i can get a far better %return, the problem is that the prop. tax is high (2.75%)...is the prop tax deductable on fed income tax? also...will i have to pay ca state income tax when i sell the prop in texas? if you can answer any of the question i would be greatful... peace

Wow! My first thought is to talk to a CPA that specializes in real estate. I have done several 1031's, even some muli level ones and it can GET COMPLICATED in several areas. Simply put, to do a 1031 it has to be for a like property (duplex) and the equity transferr has to match ($400K out $400K IN) I don't know where you are going to find a duplex in Austin that will fit. With $400K maybe you can buy it CLEAR and collect the rent. Rents are MUCH lower in Texas, so keep that in mind. Check rent.com and type in the zip code, you will be surprised. Looks like you are getting about $2K a month in Sacramento. I am shooting from the hip here (I was married to a HIGH end real estate CPA and wrote her newsletters so I am going into the dust bunnies under the couch) You will get a write off for taxes on both state and fed. When you sell the place in Texas you will have to pay capital gains tax on BOTH your State and Fed taxes (CA. gets NONE if you change your residance to TEXAS) If you are not a trust fund kid with NO WORRIES you might consider moving into one of the units until you score a job. Bottom line, TALK TO A CPA AND PAY $200 AN HOUR to get the best info you will get in your LIFE! Good luck, J