dave@lsuc.UUCP (03/09/87)
[As a public service to can.general readers, I will occasionally
post useful income tax information. These postings are not official
statements of the Law Society of Upper Canada.]
You may be able to deduct interest you have paid. If the interest
is paid on "borrowed money used for the purpose of earning income
from a business of property" (Income Tax Act s.20(1)(c)), it's
deductible.
If you have nondeductible interest (e.g., home mortgage or bank
loans taken for personal purposes) and income-generating investments,
you may be able to restructure your debt to make the interest deductible.
Consult your tax advisor as to how to structure this properly (you may
be able to lock in tax-free capital gains while you are at it).
David Sherman, Consultant
The Law Society of Upper Canada
Toronto
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