Seven deadly mistakes of landlording

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In the largest personal tax ruling ever in Canada, tax consultant and landlord David Ingram of West Vancouver was nailed with a $4.8 million judgement last year after losing a long tax battle with Canada Customs and Revenue Agency. Ingram, who has owned 3,000 rental apartments and is still revered by legions of clients across Canada and the United States, reveals here the seven deadly mistakes that landlords should never make. According to Ingram, as told to Western Investor and recapped here with permission of the editor, these are the heavy seven: 1. Not claiming all the interest. If you borrow money from any source, especially high-interest-rate charge cards, to cover taxes and other landlord expenses, make sure you deduct the interest paid in your tax return. 2. Not using the rental property to make your own mortgage interest deductible. Rental income can be used to pay down your own non-deductible mortgage. Then you can use the increased equity in your house to open a credit...