i built a new house on my block and rented the old one (where I used to live. )
the houses are on one title. I have one mortgage both for the land and the first house , and another additional mortgage for the new house. When I submit my tax return how do I calculate the mortgage expenses that are deductible? I assume the rent will be taxable in this scenario.
Yes the rental income is assessable (taxable) income. My suggestion on how to calculate this. From when you purchased the original land and house you will need to determine a value for the land and a value for the house. From this you can calculate what proportion of the mortgage is for the land. Split the land into 2 parcels and measure. (for new house plus yard and old house plus yard.) Claim the percentage of interest for the land under the rented old house and yard. Claim the proportion of loan interest for the rented old house. (which you determined first).
Yes the rental income is assessable (taxable) income. My suggestion on how to calculate this. From when you purchased the original land and house you will need to determine a value for the land and a value for the house. From this you can calculate what proportion of the mortgage is for the land. Split the land into 2 parcels and measure. (for new house plus yard and old house plus yard.) Claim the percentage of interest for the land under the rented old house and yard. Claim the proportion of loan interest for the rented old house. (which you determined first).
21 May 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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