- Joined
- Oct 29, 2008
- Messages
- 19
Tax time is going to be painfull this year.. I was wondering if anyone has some advise on right off`s .
Should I depreciate my properties? I have three that are going to be long term holds, maybe four. Two that I would like to sell in the near future (with in 5 years). I maxed out my rrsp; I know the basic right offs, interest, taxes, maintenance.
I also sold a property, the original plan was to buy it fix it up live in it... that didn’t happen. I bought it and decided that I did not want to work on it all summer so I relisted it and sold it. So I have a gain of around 35K to pay as well. Not sure if it is a capital gain or straight income.
Another quick question how come I never see an income tax expense in everyone’s calculations to see if a property cash flows? That seems to be the biggest expense next to the mortgage. Paying just over 41% on every dollar that I can’t right off is going to hurt... I know everyone pays taxes. But I have heard the $100 cash flow per door statement a few times. That does not leave much after the taxes are paid on the principal that was paid down on 25 year mortgage. Should I have my properties mortgaged higher?
Any suggestions?
Thanks Eric
Should I depreciate my properties? I have three that are going to be long term holds, maybe four. Two that I would like to sell in the near future (with in 5 years). I maxed out my rrsp; I know the basic right offs, interest, taxes, maintenance.
I also sold a property, the original plan was to buy it fix it up live in it... that didn’t happen. I bought it and decided that I did not want to work on it all summer so I relisted it and sold it. So I have a gain of around 35K to pay as well. Not sure if it is a capital gain or straight income.
Another quick question how come I never see an income tax expense in everyone’s calculations to see if a property cash flows? That seems to be the biggest expense next to the mortgage. Paying just over 41% on every dollar that I can’t right off is going to hurt... I know everyone pays taxes. But I have heard the $100 cash flow per door statement a few times. That does not leave much after the taxes are paid on the principal that was paid down on 25 year mortgage. Should I have my properties mortgaged higher?
Any suggestions?
Thanks Eric