Is Raw Property Investment Interest Non - Taxable?

by Ken
(Ottawa, Canada)

Ken,

Just found this website that I'm going to look around myself when I get home. I had never seen this site before but it looks like a great place to ask your questions:

1. I purchased raw land in another province as an investment property. As the mortgage on the land is an investment loan, can I claim the mortgage interest paid as a tax deduction? If I do claim the investment loan interest as a deduction against my other income, what are the tax implications on the sale of the raw land?

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Jan 18, 2013
RE: Is Raw Property Investment Interest Non-Taxable...
by: Tom Karadza

Thanks for the question!

We are not accountants so please double check this!

From our experience, you can always write off the interest on loans/mortgages/credit lines used for investment purchases. And, from our experience, it doesn't have any tax implications on the sale of the investment. Having said that, we've never investing in raw land before so perhaps there are some differences. A good accountant should be able to guide you fairly easily. The only time we've had "tax implications" is when we take depreciation of the asset while we own it (for example, depreciating the value of a property on a piece of land).

Hope that helps!!

Tom.

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