We are planning in July to rent out our current home which is in my wife and my joint names and buy on using the 90% equity. I appreciate we will need to have the home market valued and intend to place into a new LTC on renting with our effective interest being a 50/50 share split. Our intention was to fund it with 100% borrowings to maximize interest tax deductions, our economic exposure would be 100% to the bank. I have been informed there are changes from April 1 with the new LTC rules that you cannot offset total borrowings, only the current mortgage debt as the entity change is not at arms length?
Obviously we wish to maximize the tax deductions, if the above is correct are we then better to look at a trust even thought the tax credits will be locked in for many a year although it will offer asset protection benefits. Thanks for your advice.
Obviously we wish to maximize the tax deductions, if the above is correct are we then better to look at a trust even thought the tax credits will be locked in for many a year although it will offer asset protection benefits. Thanks for your advice.
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