Solved: Can I claim interest paid for the purchase of a se...

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Can I claim interest paid for the purchase of a second property? I have mortgage interest and line of credit for the down payment of same property.

Currently this is not a rental property. We are expecting to make money when the property is sold in 3 years.
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Level 6

Can I claim interest paid for the purchase of a second property? I have mortgage interest and line of credit for the down payment of same property.

This type of interest is not claimable for your investment in the second property, unless it becomes a rental. Then it can be used as a rental expense.

"If the only earnings your investment can produce are capital gains, you cannot claim the interest you paid. "

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/221/menu-eng.html

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Highlighted
Level 6

Can I claim interest paid for the purchase of a second property? I have mortgage interest and line of credit for the down payment of same property.

This type of interest is not claimable for your investment in the second property, unless it becomes a rental. Then it can be used as a rental expense.

"If the only earnings your investment can produce are capital gains, you cannot claim the interest you paid. "

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/221/menu-eng.html

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