So you need some money for unexpected expenses. The roof took on a leak, the deck rotted through and a new family addition tightened living space. You bought too much Christmas on credit now the bills are overwhelming. Junior got accepted to that Ivy League school. Tapping into your home equity can help ease your financial burden. Before deciding on borrowings ask you a few questions first.
1. Do I need a home equity loan or a home equity line of credit?
If interest rates are low, a loan is a smarter choice. You can borrow the full amount at once ant get a fixed rate on the entire amount. The advantage allows you to know how much to budget for monthly payments. Continue reading
Recently, I put up my residential property for rent as I would be going overseas shortly for a couple of year. I had to incur advertising. I had also to seek legal advice tenancy agreement. Can I deduct such expenses against my rental incomes for income tax purposes? Section of the income tax act govern deduction of expenses wholly and exclusively incurred in the production of the income are deductible. The advertising and legal fees in this case are expenses incurred not in the production of the rental income but in putting you in a position to earn the income i.e. securing the first tenancy from witch the income then arises. As such the expenses are not deductible under section 14. Continue reading
There are many steps you can take in efforts to improve your credit, eliminate your debt, and avoid bankruptcy. Which should be the ultimate goal of all people, while bankruptcy is an excellent method of helping you clear up your debt, it should only be used as a last resort. Bankruptcy remains on your credit for up to ten years and it could result in the inability to retain any other type of credit until it has been removed or several years has passed. One thing that a debtor can do, this is especially true if they have no income or assets, is to do nothing. Continue reading