Mortgage capital and rental income

[Shape]

Hi,

Forgive me if this has been answered already but I can't find anything in the forum.

I am aware that the mortgage interest is a deductible expense, but what about the mortgage capital? If not an expense, is it even considered to be a part of income, as that amount is going straight to the bank and not me, as a landlord?

All help gratefully received, thanks!

 

[Berni]

It is income to you, and you are using it to buy an asset. So yes, it is taxable income.

And only 75% of the interest is deductible.

 

[Shape]

Thanks for the reply!