Can I deduct mortgage interest if I rent out my house?
If you rent out your property for the entire year, then the total amount of interest on your mortgage is tax deductible. If you only rent it out for a portion of the year, then only that period (e.g. 4 months) of interest payments is tax deductible.
Are rental property legal expenses tax deductible?
Generally, you can deduct the professional fees incurred for the sake of running your rental operations. However, legal expenses incurred to purchase a rental property can’t be deducted from the gross rental income; rather, split them between building and land, then add both to the specific costs they belong to.
Are mortgages tax-deductible in Canada?
The short answer is: Possibly. It all depends on how the property is used. For a mortgage to be tax-deductible in Canada, the property the mortgage belongs to must be used for generating income (whether that’s rental income, business or professional income). The good news is that primary residences can qualify for mortgage interest tax deductions.
Is rental property interest tax deductible in Canada?
The official line of the Canadian government is that you can deduct the interest you pay on any money you borrow to buy or improve a rental property. If you rent out your property for the entire year, then the total amount of interest on your mortgage is tax deductible.