Any comments from the financial and/or real estate guys on CP?
Quote:
OTTAWA - A Toronto couple who attempted a complicated manoeuvre to effectively make the mortgage on their home tax deductible abused federal income tax laws, the Supreme Court of Canada ruled Thursday.
"It has long been a principle of tax law that taxpayers may order their affairs so as to minimize the amount of tax payable," Justice Louis LeBel wrote for the 4-3 majority. "However, this principle has never been absolute."
The split decision is a defeat for Earl and Jordanna Lipson, a Toronto couple who swapped non-deductible interest for deductible interest while buying their $750,000-home in 1994.
The scheme involved paying down their mortgage immediately after obtaining it, then using the repaid principal as collateral for an investment loan, which is tax deductible under the Income Tax Act.
|
http://www.canada.com/topics/news/story.html?id=1155182