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The Smith Maneuver: The Loophole Canadian Real Estate Owners Use To Lower Taxes

Author: External Author | | Categories: Business Financing , Certified Real Estate Investment Adviser , Commercial Financing , Construction Mortgage , Debt Consolidation , First Time Home Buyers , Home Mortgage , Licensed Mortgage Agent , Lowest mortgage rate , Mortgage Associate , Mortgage Broker , mortgage interest , mortgage preapproval , mortgage prequalifying , Mortgage Rates , Mortgage Refinancing , Mortgage Specialist , Rental Property Financing , Second Mortgage

Canadians often complain mortgage interest isn’t tax deductible, like in the US. Some argue this is a trade off for the capital gains exemption Canadian homeowners have. However, one of the worst kept secrets in finance is mortgage interest can be turned into a deduction. One of those strategies is the Smith Maneuver, created by BC-based Fraser Smith in the 1970s. That’s right, for over 40 years, wealthy Canadians have deducted mortgage interest AND received tax-free capital gains. Let’s take a dive into the basics of how the Smith Maneuver works.

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Original Article Source Credits:   Better Dwelling,

Article Written By:  Stephen Punwasi

Original Article Posted on:  Dec 27, 2021

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