Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - Trying to get my head around the Smith Manouvre

V · 12-16-2009, 11:34 AM

I didn't want to hijack the Stocks thread with this, so I thought I'd start a new topic.

Hypothetically, I have 100k in a cash investment account. I also have a 100k mortgage. Can I withdraw the 100k from my investment account, pay off the mortgage, then take out a LOC against the house for 100k, and use that borrowed money to deposit 100k into my investment account? Essentially I'm making all of the interest I pay on the mortgage tax deductible.

12-16-2009, 11:34 AM	#1
V Franchise Player Join Date: Feb 2005 Exp:	Trying to get my head around the Smith Manouvre I didn't want to hijack the Stocks thread with this, so I thought I'd start a new topic. Hypothetically, I have 100k in a cash investment account. I also have a 100k mortgage. Can I withdraw the 100k from my investment account, pay off the mortgage, then take out a LOC against the house for 100k, and use that borrowed money to deposit 100k into my investment account? Essentially I'm making all of the interest I pay on the mortgage tax deductible.