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Old 10-08-2006, 05:30 PM  
Quotealex
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Join Date: Sep 2001
Location: The Global Digerati Village
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I don't beleive there are any of those advantages in Canada!
You depreciate a property here but they will hit you with a capital gain tax when you sell it.
I don't think we can write off the interest portion of a mortgage in Canada, but I'm no tax specialist.


Quote:
Originally Posted by HighRoller View Post
It's a tax shelter vehicle. Many many tax benefits.

If you live in in 2 of the last 5 years and you are married you can exclude up to $500,000 in taxes and $250,000 if you are single


interest is a write off, the house can be depreciated
land improvements over 15 years, personal property over 5 years
the house over 27.5 years.

Many people are getting 1-2% option ARM loans
therefore if you buy 5 properties at 2% rates
and cashflow $1000/mo on each that's $5000/mo cash flow
today, now in reality it's not as good of an investment as it looks
but people get talked into it by loan officers
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