How to Deduct Interest on Money Borrowed for Investment Properties Watch Video
Allan Madan, CPA, CA
If you are a real estate investor and are thinking of borrowing money to make your next purchase, Read More…
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The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CPA, CA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
Good day
I used my HELOC to invest into a rental property.
This particular line was only used for that purpose
There isn’t a loan agreement in place for this except the paper trail of the certified bank draft from the HELOC into the investment property.
Would this meet the criteria for Canada revenue ?
Secondly I was thinking of turning the HELOC into a mortgage so I can pay it down. Can this be done?
Hi Chris,
You can claim a tax deduction in interest paid on a HELOC, as the funds were used entirely to purchase a rental property (income producing asset). You can covert the HELOC into a separate mortgage and still deduct the interest. But make sure that you can still track the interest separately after conversion.