Mortgage Interest (Interest Income or Professional Income)

[James 02]

Hi all! I have searched quite a bit and cannot find any commentary - if I lent out money as a private mortgage and receive monthly mortgage interest payments - should this income be recorded under Interest Income (line 12100) even though no "T" slips issued or use form T2125 as Professional Income? Any comments would be greatly appreciated. Thank you!

[Geo123]

Hello James 02,

In UFIle go to Interview >> Investment and interest income and expenses

>> Income not from a T-Slip   Interest income not on information slips "+"

      *Mortgage interest Interest income from the issuer of the mortgage:   [     ]     [    ]

OR

Interest from other sources  [     ]     [    ]

 

[TrevorBoyer]

Hey there. If you lent out money as a private mortgage and get paid interest every month, you might want to talk to a tax professional to figure out whether it should be considered Interest Income or Professional Income. But if you lend money on a regular basis, it's likely to be considered professional income. Also, have you checked out Vanguard Mortgage? They're a mortgage agency that can help you with the lending process and make sure your investments are secure. Their website is https://vanguard-mortgage.com/. Anyway, just a suggestion. Let's keep the thread updated, guys.

[BrysonFernandez]

Best of luck with your tax and financial planning!

[gogogreatnick]

It's essential to handle such income correctly for tax purposes. While I'm not a tax expert, I recommend consulting with a tax professional or financial advisor for guidance on whether to record it under Interest Income or as Professional Income.

If you need some expert advice, you might consider reaching out to "Mortgage Broker York." They can provide insights on various financial matters, which could be really helpful in your situation. Good luck with your tax-related decisions!