logo

Discover

Categories
Popular Tags
SV logo
Published on: November 23, 2021 at
Amortizing Financing Costs (tax deductible in the US vs Canada)
4
0
0
Amortizing Financing Costs (tax deductible in the US vs Canada)
Amortized Financing Costs are tax deductible. Example Upfront financing cost is 2% of the loan. Upfront cost = loan amount * 2% = 16 000 🇺🇸 In the US 16 000 / 30 years to the end of the loan = amount that can be deductible each year = 533$ If you were to pay off the loan at the beginning of year 5, you would deduct ALL remaining Amortized Financing Costs. 16k - (533*4 years) = 13 867 In the US, since AFC reduce taxable income, there is much less taxable income in year 5. 🇨🇦 In Canada, the Financing Costs can only be amortized over 5 years. All you have to do is 16k/5. ...................................... Don't hesitate to reach out in the comment section if you have any questions. Disclaimer. The content in these videos shall not be construed as financial advice. It is your responsibility to verify all information yourself. This is a Youtube video for entertainment purposes ONLY. Do not make investment decisions based on our videos. No copyright infringement is intended. Let's get rich. Let's finagle this bagel.
Comments 0