Quote:
Originally Posted by penner2k
What if you have one nice property? Why do you need to have an expensive car? No debt maybe in Canada.. in the states it actually doesnt make sense for you to not have a mortgage since you can actually write the interest off.
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You know that "write off" means it's just a tax deductable, right? Just like investment property mortgage interest here in Canada. It means that you don't pay tax on the amout equal to the interest payments, it doesn't mean that you get the whole amount of interest back. For instance, if you pay $10k in interest on a mortgage, you might get $1500-$3000 back depending on your tax bracket. You're still paying $7000-$8500 in interest.