Eligible Expense

In a Cash Damming structure, only genuine rental operating expenses qualify to be paid from the HELOC and traced as deductible: property tax, insurance, maintenance, and condo or management fees. The rental's own mortgage payment (interest or principal) is deliberately excluded, and so is the rental's gross income — redirecting either would weaken the CRA direct-use tracing position the whole strategy depends on.

This list is exactly what drives the redirect amount on the Rental Cash Damming Calculator. If an expense isn't on it, it doesn't belong on the dedicated HELOC.