How to Make Your Mortgage Interest Tax Deductible - The Smith Manoeuvre Re-Visited
In the U.S. the interest that people pay on their mortgage on their principal residence is automatically tax deductible. Only interest paid on investment properties in Canada is tax deductible. There is a way, however, to make the debt on the home you live in tax deductible too! It's called the Smith Manoeuvre. I've spoke about the Smith Manoeuvre in a previous newsletter but it's been a while and I found a great article which details the process of setting this sort of investment strategy up. It also talks about the risk/reward payoff. As with any investment strategy their is always risk for the potential of reward.
Take a read of the full article and let me know if you have any questions or would like to discuss the strategy further.