My associate and I simply purchased a small funding property – an residence on Kamloops BC. We are nonetheless paying off our house within the Lower Mainland, however this extra asset ought to present rental revenue profit that shall be used to repay the principal of our main house.
My query is round offsetting capital revenue prices. We put 40k down out of line of credit score and we might wipe that debt out tomorrow with liquid investments That mentioned, I àm at loss understanding how a lot profit I might get from the writeoff of the curiosity funds at 4.4% ought to we determine to proceed to maintain these investments in and repay the mortgage over time.
Can anybody inform me what the optimistic tax implications are for bills similar to this mortgage fee towards any capital revenue we would get hit for at tax time?
Many thanks upfront.