Is mortgage interest on a mortgage deductible?
Many individuals who live in Ontario want to know if interest on a mortgage is deductible on the annual federal and Ontario individual income tax return filed with Canada Revenue Agency.
As of the date of writing, interest on mortgages is only deductible in SOME circumstances. It depends on how you are using the funds received from the mortgage. The law in Ontario is constantly changing. In addition, litigation in court cases throughout Canada can and does change the interpretation of the law with respect to mortgage deductibility. It is not always easy to determine whether interest on mortgages can be deducted.
If you are an American citizen, you will also need to take into account American federal law and possibly state law.
If you are required to file tax returns in other countries, you may also need to take into account the law in the other country.
This article is intended to inform readers of developments as of the date of publication on November 9, 2010 and is neither a definitive analysis of the law, proposed law, administrative positions, interpretations, court cases etc. nor a substitute for professional advice. Readers should discuss with appropriate professional tax advisors, financial advisors, legal counsel and/or other advisors regarding how the information may apply to their specific situations. This post will NOT be updated for changes in income tax legislation after publication. E.&.O.E.
Is mortgage interest on a mortgage deductible?
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