The Smith Maneuver: The Loophole Canadian Real Estate Owners Use To Lower Taxes
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.
Original Article Source Credits: Better Dwelling, https://betterdwelling.com/
Article Written By: Stephen Punwasi
Original Article Posted on: Dec 27, 2021