Hearing a lot about the “Smith” maneuver. Just wondering what the downfalls are and the risks. This pertains only to Canadians. Investment Firm answers are welcome, but I do need to hear the downsides in order to better understand the upsides. Would love to kill my mortgage faster, especially since I just worked out that I will be paying over $24K in interest this year!
Is this the correct formula for the tax deduction:
Tax rate of 38.5% times all the mortgage interest I paid in the past year?
Also, If I owe $100 in taxes but my deduction is $125 (based on formula above) does that mean the govt. will send me a check for $25?
I know when married filing joint, interest on $1,000,000 on first mortgage and $100,000 on home equity is fully deductible. These limits are cut into half if you are married filing separate. What would be the limits if your filing status is head of household? What about single?
I am looking to purchase a residence with a family member. I am wondering who would use the tax benefits that come with homeownership. Would we split the mortgage interest ? Would we split the property tax?
I am divorced and am paying the full mortage payment and property tax for a home purchased during the marriage. My ex does not work and does not contribute to any of these payments. Can I take the full property tax and interest deduction for tax purposes?
