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  1. #1
    Expert Forum User The Ultimate London Mom!
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    Question rental property interest expense

    we bought our first rental property, and trying to get it paid off as quickly as possible. down the road, if we get it paid off and then take out a home equity loan (or another mortgage) on it, will we be able to deduct that interest expense?
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  2. #2
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    Hi there,

    Quick answer is NO ... unless your using the LOC to fund repairs/reno's to the rental. Leveraging the property to fund other activity isn't a deductible cost of earning that stream of income.

    If your using the LOC to fund investments in non-registered accounts (not an RRSP or TFSA or RESP) then you can deduct the interest against that investment income.

    Let me know if you want more info ...

    thanks
    Last edited by strongmommy; 01-30-2013 at 09:29 PM.

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