Learning how to reduce your income taxes is an ongoing educational process. It often seems as though the government is regularly creating new and inventive ways in which to make Canadian wealth more taxable as opposed to tax efficient.
Creating the opportunity of being able to convert your mortgage from an interest loaded payment to one that utilizes a strategy that contributes to your overall wealth is a structure that Investors Source Wealth Management is proud to represent.
For many homeowners, the first concern is whether or not the tax deduction will hold up and whether or not the individual or tax payer will be challenged by the Canada Revenue Agency. We are proud to note that the Supreme Court of Canada ruled in favour of a tax payer who pioneered this strategy in the late 1980’s.
The Supreme Court noted in 2001 in the case of lawyer John Singleton that: “Taxpayers are entitled to structure their transactions in a manner that reduces taxes; the fact that the structures may be complex arrangements does not remove the right to do so.”
If you borrow the money from your home and expect to make a profit, be it to grow your business as an entrepreneur or another form of investment, the mortgage interest is tax deductible.
Harmonized to this strategy are unique insurance* safety features that Investors Source Wealth Management will put into place to ensure that your principal residence is protected should an unexpected tragedy occur.
*Insurance products offered through Diamond Tree 1000 Insurance Agency Inc. or Investors Source Insurance Ltd.