Do you have a rental property or are considering purchasing one? Make sure to seek advice from your accountant (hopefully a good accountant) regarding this type of real estate ownership. I am by no means an accountant but know a few good tricks. Did you know that the interest portion of your mortgage on a revenue property is tax deductible? Almost every expense you may have with regards to the revenue property is a write off. When you are purchasing or simply owning this type of real estate property, here are some examples:

• Lawyer, inspection and appraisal costs when purchasing
• Annual property tax (please don’t quote me, I am not positive about this)
• Strata fees (if applicable)
• Mortgage interest
• All upkeep and repairs
• Advertising costs for renters
• etc.

Remember that owning a rental property is like owning a business. Make sure to take advantage of this. If the government is going to tax you for the rental income, you want to write as much of that off as you can. It’s much better to have the larger mortgage on your rental properties then on your principle residence. Unless of course the mortgage on your principle residence is used for a revenue property. Then this too would be tax deductible.

I am always listening for your opinion so please feel free to comment below and check out my other blogs on this site. I am a Vancouver mortgage broker working with everyone from first home buyers to investors. At the same time I do my best to education the public on how to be more financially savvy over all. If you would like to learn more about mortgages and over all real estate, please check out www.jessijohnson.ca. To subscribe to my vblogs, please click here: www.firsthomeinfo.ca/blog