I'm interested in buying a 2nd property but have a mortgage of my own. Any tax benefits to buying?

Answer 1

You can deduct home mortgage interest on upto $1,000,000 of acquisition mortgage. However this is allowed only for residential properties. The criteria for this is tht any home must be used for personal purposes for atleast 14 days in a year to be called a residential home. The mortgage must be secured by home.you can do this for first and second home only.

Answer 2

if you buy it as a rental income, yes, if just to own it, no. the expense of owning it would be prohibitive. much of the tax benefit is derived from it being a rental as you would be able to deduct all upkeep and tax costs as a business offset for the rental income. however, if the expenses are more than the income it generates you could come out in better shape but that isn't the purpose of the rental. if you do have rental properties, set it up as a company and incorparate so as to reap all the tax benefits of the corporation.