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.

to buy U S properties, which title would be better for the tax saving: using company or individual? If company, US or Canadian company?

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We are looking at purchasing a second home in florida, which we will rented out short term. what will we be able to deduct? taxes, mortgage interest, furnishings, property management fees, hoa fees?? i was told you cannot deduct those things if your combined income is able $150,000. i live in pennsylvania. thanks for your help! we would not be living in the home at all. we would just visit it once or twice a year to check on it. would i have to set up a business for the rental???

Whoever told you that is incorrect. Expenses of producing rental income are deductible against rental income, regardless of how much you earn. Such expenses are NOT deductible directly against your other income, and this may be what whoever told you this was talking about. Rental income is reported on Schedule E. Deductible expenses also go on Schedule E. Of the items you mentioned, furnishings are not a deductible expense. Furnishings that you buy are expected to last many years, and are considered capital improvements, as are major improvements/replacements such as new roof, new furnace, replacing a driveway, among others. Instead, they are depreciated over a set period of years as determined by IRS rules, and reported on a different form. Information for that depreciation expense then goes on Schedule E. For example, if IRS rules say the expected life (and recovery period) of a new roof is 15 years, you would be able to deduct 1/15th of the cost each year for 15 years. You also depreciate the property itself, though over a longer time. But, you say you are renting short term. This can get very complicated, and may have a huge impact on what you can and cannot deduct. For example, let's say you intend to live in the for six months out of the year and rent it the other six. You then must prorate the expenses. half the actual property tax, half the HOA fees, half the interest expense, etc. And depreciation becomes very complicated and should be trusted to a qualified tax professional.

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We are trying to buy a rental property. wondering how the tax shelter part works. what things can be deducted. heard from an accountant that inactive income cannot be deducted from regular income. how those people investing on real property saving money. how to calcuate the cash flow.

First off, rental income and rental expenses offset each other. Then if there is a loss (insurance, taxes, interest, repairs, depreciation greater than income you have a loss) you may claim it against other income. Depreciation is not treated differently than other expenses. If you have a rental loss (even though it may be cash flow positive) then it can offset other income. Unless your business is "real estate" this may be considered a passive loss and there are limits on how much of a passive loss you may be able to take each year. Check with a CPA or tax professional for full details.

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Am i required to deduct this ? rented out for 5 yrs now and never claimed this. i have read that when i sell i have to pay capitol gains on this.

You are allowed to depreciate the cost of the improvements to the land. This includes the cost allocated to the building. The portion of the purchase price allocated to the land is never depreciated. The depreciation is taken each year as an ordinary expense against rental income. The ideal rental will result in a loss to the extent of the depreciation taken and of of your out of pocket cash costs would be covered by the rent receipts. If you have not taken depreciation on the building I would recommend that you amend your prior year return to claim this expense. You would need to amend 2003 by April 15, 2007 because there is a three year window for filing an amended return and the 2003 year runs out of timw this April.

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I am planning to rent out my house. i have made considerable renovations to the property. i was told that i could write these home improvements off when my house becomes a rental prop. what i am not clear on is whether i can write things off if i am working with a property management company or if i must manage the property myself. i am not sure if there is a difference. i would appreciate any clarification on this from people in the know! i want to be assured that i can write off these improvements, as it exceeds $25,000 at this point. thanks.

The management thing is a moot point. In fact, if you pay a property manager that could be written off too. Anything related to the property that is an expense is deducted. ... just like a business would deduct the cost of emplyees, office supplies, etc. The "write off" is generally only deducted from the income of the property and not your regular income.

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1. mileage to and from my paid job (where i work for someone else and receive a w-2) 2. doctor visit co-pays 3. the 20% of medical expenses my insurance doesn't cover 4. prescription medications 5. chiropractor visits i didn't track these things for 2010, but it looks like i might be close to topping the standard deduction with my mortgage and property taxes. if i could deduct these things, too, it would be worth it to keep track in 2011. thanks in advance!

1. No, commuting is never deductible. 2. Only the amount that exceeds 7.5% of your AGI IF you itemize 3. Same as #2 4. Same as 2 and 3 5. same as 2, 3, 4 Be able to prove all those medical expenses with receipts.

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My parents are offering me to put my name on the home title. they think this will let me deduct the mortgage interest and property tax. is this true? are there any things on the side i should know about before i do this?

Putting you on the title will not allow you to take the tax deduction for mortgage interest. You will not be on the mortgage, so even if you pay the mortgage, you will not be allowed to deduct the interest. If your name is on the title and you pay the property taxes, you could deduct those. If your parents want you to own the home, they should discuss this with an estate attorney who can advise them of the best strategy to minimize taxes (you should probably inherit the home).

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We bought a house in june of last year. as a result of buying this house, we had to purchase a refrigerator, washer and dryer as well as a few other minor things like light bulbs. we also had to have repairs done to the plumbing to make it liveable. are any of these expenses deductible on our federal tax return? i know we can deduct mortgage interest and property taxes, i'm just wondering about the other stuff since they were necessary expenses.

Sorry but no, these are costs associated with owning a home and cannot be deducted on your tax return (even though they were necessary to make the home livable). The only thing deductible in a primary home, like you mentioned, are the mortgage interest and property taxes. It would be a different story if the property was a rental property.

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Hi there please can somebody help?! in tax year 09/10, i bought a new bin, lights and a tv for my flat which i rent out furnished. can i deduct the cost of these items from my property income?! i know that you can deduct things like the cost of paint as a repair, but there seems to be no guidance as to whether things like tvs which are bought for rental properties can be deducted! i am claiming the 10% wear and tear allowance. i have searched the web for hours for an answer to this question to no avail. everywhere just regurgitates the hrmc/direct govs own list of allowable expenses!

HMRC specifically mentions TVs for rental properties under their blurb about wear and tear allowances. Apologies if you've already seen this and found it less than helpful: http://www.hmrc.gov.uk/manuals/pimmanual/PIM3200.htm

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We purchased a home jan 2006 because of relocation w/ a job. the move was 850+ miles. can i deduct things like the interest from (22 days), county property tax and school taxes (included in the closing costs - because this was new construction), attorney's fees, etc. please help.

None of that is deductible as a moving expense. The rules are very specific on that. The property taxes, prepaid mortgage interest and points are deductible if you itemize. The interest and points should be listed on the Form 1098 you got from the lender so make sure you don't take a double deduction. Any prepaids for homeowners insurance or property taxes have no tax consequences, they're just deposits against future bills. The remaining closing costs (attorney's fees, title insurance, etc.) are added to your cost basis and will reduce your gain when you eventually sell.