T ax time is not fun, especially if you own multiple properties and have to provide your accountant with income and expense information for each property for the past 12 months.
Aside from that part of the process, I actually love tax time because it is the only time of year I get the opportunity to be 100 per cent in control of my portfolio financing for the rest of the year.
Let me explain.
Many investors go through the motion of filing as much as they can in terms of property expenses and showing less income on their personal taxes (for those of us who are self-employed) in order to reduce their tax bill on the net collective income they make.
While nothing is wrong with legitimate expenses and saving on your tax bill , it's important to remember that once your portfolio is at its fifth property (which I refer to as the "tipping point"), the net surplus/deficit reported on the statement of real estate rentals on your yearly tax return start to play a pivotal role into your ability to continue to borrow at attractive rates, with 20 per cent down, 30-year amortizations with no rate or insurance premium or increase to the down payment. read full article >>
By Dalia Barsoum -Canadian Real Estate Wealth
Looking to buy, sell or refinance? Know your options. I can help! Direct line: 416-219-6662
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